Home » USD index » US Dollar Index 7 Dec 2009

US Dollar Index 7 Dec 2009

Dollar Index Chart 7 Dec 2009

Dollar Index Chart 7 Dec 2009

The US dollar index closed the week with one of its strongest performances for some time, having been given a strong boost from the NFP figures which triggered the rise in the US dollar, ending the the day with a wide spread up candle which breached all three moving averages, and simultaneously breaking above the short term resistance in place in the 75 price level.  However, whilst this bout of optimism has continued in this morning’s trading it would be easy to suggest that this could be the start of a longer term recovery for the dollar, there are a range of deep and sustained potential resistance areas now sitting above, and for any longer term recovery these technical areas will all need to be breached in due course. In the short term, Friday’s price action provided a much needed breather in the long slow decline for the US dollar, and for this to become a positive platform, we first need to see a break and hold above the 77 price level, with the 79.50 level following shorty after. If both these areas are breached by a move higher then this could provide a solid platform for a longer term recovery in the fortunes of the US dollar.

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