Dollar Index - Review and Analysis by FxListing.net

ddukic

Trader
Sep 20, 2012
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Dollar Index 02/10/2012 - Review and Analysis

dxD-02102012.jpg


USD INDEX

COMMENTS: Unfortunately I cannot present a 4 hours chart for the USD Index too, in order to have a uniformity of time frame on all instruments and pairs we analyze. Anyway, let us be satisfied with the Daily chart. Day by day we proceed for the D2 upper trend line of the red channel D1-D2. As you can observe, the lows of most days are higher than the previous day/s thus creating a cautious but steady diagonally up move. In my opinion, the 200SMA will constitute one of the targets this correction would like to reach as it evolves. In the meantime, is possible for the 50SMA to be around there at the same tine creating in conjunction with the 200SMA a strong level that is expected to act as resistance.

SUGGESTIONS: When the price of the USD Index increases, the currencies included in it lose against the USD. If my forecast about the price going up to the forthcoming crossing of the two SMAs, you should keep your short positions on the currencies against the USD. Obviously, for all friends trading with CFD Brokers who offer CFD trading on the USD Index, you must keep your existing long positions opened until the forecasted crossing. For long positions on the currencies constituting the Index, or, short positions on the Index itself we will be talking after the Index’s price reaches the 200SMA. Anyway, today’s trading will give us a better sign for our forecasts.