Home » USD index » USD Index – Forex Analysis 24 August 2009

USD Index – Forex Analysis 24 August 2009

USD Index - Daily Chart For US Dollar 23rd August 2009

The USD index ended the forex trading week with a mixture of good and bad news for the US dollar, which was represented from a technical forex analysis perspective with a wide spread down bar, but one with a deep lower wick. The negative side of Friday’s trading session for the USD index was of course the fact that we have now broken below all three moving averages once again, suggesting an imminent move lower for the US dollar once again. However, the positive side to Friday’s trading was the depth of the lower wick, which suggests that there was a degree of dollar buying in the market, no doubt triggered by the fall earlier in the trading session. Overall, the technical picture looks very weak for the dollar, and should we see a break below the 77.50 price handle, then this could signal a much deeper move, initially to re-test the interim support at the 76 price point, and should this fail, then the 72 price handle becomes a distinct possibility. At present there is nothing on the daily or weekly chart for the USD index, to suggest that this long slow decline is likely to change in the short term, with the weekly chart looking very bearish following a three candle pattern of an up bar, doji, and down bar, with all three moving averages weighing down once again. With extremely strong resistance now in place at the 79 to 81 price range, for any strong reversal we will need to see a break and hold above this technical level for any move higher to be sustained.