US Dollar Index Daily Chart

As I said in yesterday's post, one swallow doesn't make a summer, following the wide spread up bar of Wednesday, which gave us a bullish signal on the daily chart for the US dollar index.  Thursday's candle was hardly a ringing endorsement, but perhaps we can overlook this as the market awaited the Non Farm Payroll data, which duly delivered a much better than expected headline rate. As a result, the currency markets suddenly realised ( albeit slightly after the event) that this might translate to a higher Fed Funds rate in due course, and as as result promptly rediscovered the US dollar which promptly strengthened against most other currencies, and surged higher on the index in afternoon trading. Provided this holds for the remainder of the trading session, then we could see a position where the wide spread up bar has penetrated and held above the initial resistance level immediately above at 80.25, whilst simultaneously breaking above both the 9 day and 14 day moving averages. There is still a long way to go, and it is too early to say that the long slow decline has now reversed - for this to be true we will need to see a break above ( and hold ) at the major congestion and resistance between 83 and 87 on the daily chart. If this does occur, then we could see a degree of strength return to the US dollar in due course.

Anna's Websites Below:



http://www.euro-vs-dollar.com
http://www.euro-to-dollar.com
http://www.usd-to-cad.com
http://www.yen-to-dollar.com
http://www.prices-oil.org
http://www.spot-gold-price.org
http://www.pounds-to-dollars.com
http://www.spot-silver.com
http://www.cot-report.com
http://www.currency-trading-forex.com
http://euros-to-pounds.com