Dollar index building momentum to the upside

index futures
USD Index Daily Chart 22 Feb 2013

Yesterday’s price action on the US Dollar index was highly significant with the price once again testing the key resistance at 81.60, which defines the upper level of the current congestion zone which has extended from October 2012.

Whilst yesterday’s candle ended as a wide spread up bar, the high of the day touched an intra day high of 81.61, before pulling back overnight to currently trade at 81.39.  However, the index now appears to have some real momentum and having breached the interim resistance at 81.20 there may now be sufficient upside pressure to move to 81.83 and there after through to test resistance in the 82.11 area.

Should this occur then there will be a substantial platform of support to sustain further dollar strength in the medium term.

By Anna Coulling

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About Anna 1030 Articles
Hi – my name is Anna Coulling and I am a full time currency, commodities and equities trader. I have been involved in both trading and investing for over fifteen years and have traded many different financial instruments, from options and futures to stocks and commodities. I write and publish articles ( mostly for free ) for UK and international publications on a wide variety of financial issues, and in particular I enjoy helping others learn how to invest and trade.

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