Home » USD index » US Dollar Index 30 Nov 2009

US Dollar Index 30 Nov 2009

Dollar Index Chart 30 Nov 2009

Dollar Index Chart 30 Nov 2009

The technical picture for the US dollar could hardly be more bearish if it tried, with Friday’s candle once again adding further pressure on the poor old dollar, and despite Ben Bernanke’s surprise intervention last week, shows little signs of receiving any support from anywhere, so the message for currency trading options is to once again sell the US dollar until further notice! The weakness of Friday’s candle is self evident from the daily chart, with the deep upper shadow finding strong resistance from the 40 day moving average, which once again proved to be the defining technical indicator for the current downwards trend, as we now await the almost inevitable break below the temporary ‘floor’ at the 74.60 price handle. Once this has been breached then the long drop awaits, and a possible fall to retest the deep and wide congestion in the 71 to 73 price region, and any breach here would signal a dramatic move lower. However, in the short term the picture remains as for the past few weeks, with a long slow decline in evidence, delineated by the 40 day moving average which marks the upper level of any short term move higher.

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