Home » USD index » US Dollar Index Analysis 23 Nov 2009

US Dollar Index Analysis 23 Nov 2009

Dollar Index Chart 20 Nov 2009

Dollar Index Chart 20 Nov 2009

Some welcome relief for the US dollar and the dollar index last week which for once closed higher, a rare occurrence in the last few months, with the weekly chart ending with a relatively wide spread and somewhat isolated blue candle, a lone beacon in a sea of red, with all three moving averages pressing firmly down on the waterlogged index. The daily chart tells a similar picture, although at least in this case Friday’s price action was able to penetrate and hold above the 9 and 14 day moving averages, but failed to breach the 40 day, which still remains ominously above the current price level, and with the high of the trading session finding some resistance from this indicator, this is not a positive signal. Whilst the trend remains firmly downwards from a technical perspective, it will be interesting to see the effect of Ben Bernankes speech last week which surprised the markets and was certainly one reason that the US dollar received a minor boost following his comments which came as a surprise, and which hinted that whilst the US dollar’s decline was of no concern at present, this picture could change in the future, with some analysts suggesting that the FED could intervene to support the ailing currency either directly or indirectly, and in particularly if inflation begins to raise its head once again as the economy recovers from recession. Technically however, the outlook for the dollar index remains bearish, and until we see a break and hold above the 79.50 price level, then we can assume that the trend of a lower US dollar against a basket of other currencies remains firm.

What is one of the best retail forex trading platforms?  In my view it is Metatrader 4.  Advanced, powerful & intuitive it now comes with ECN execution, so you can happily scalp away without broker or dealer intervention.  Just download your free demo copy of MT4 by following this link – download metatrader free –  and get started today.  Don’t forget to follow my daily posts for updates and analysis of the forex markets to
help you with your forex trading – so good luck and good trading.