Home » USD index » US Dollar Index Analysis 5 Nov 2009

US Dollar Index Analysis 5 Nov 2009

Dollar Index Chart 4 Nov 2009

Dollar Index Chart 4 Nov 2009

Tuesday’s bearish signal was duly confirmed yesterday on the US dollar index chart, which ended the currency options trading session with a wide spread down candle, which did at least find a modicum of support later in the trading session, ending with a deep shadow to the lower body. Whilst  one could argue that the index found some support from the 14 day moving average, this technical indicator has little validity at present given the sideways price action at present and the consequent intertwining and bunching of the moving averages as a result. More importantly perhaps the index seemed to find some support from below as we now run into the recently established platform in the 75 to 75.50 price band. However this may be clutching at straws as the strongly bearish shooting star candle of Tuesday still remains dominant on the daily chart, and as such the direction for the US dollar remains firmly lower in the short term, with the FED statement and announcement having provided little encouragement to US dollar bulls that the ultra low rates are likely to end in the short term, despite the current crop of good economic news stories for the US economy. Longer term ofcourse the tide will turn once again, and probably when the markets least expect it, but technically for the time being the sentiment for us and for our currency options trading remains firmly bearish.

R1:  76.24    S1:  75.52

R2:  76.63    S2:  75.20

R3:  76.95    S3:  74.81

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