USD Index 2 Sep 2010
The usd index continues to hover on the 40 day moving average as the forex markets await tomorrow’s non farm payroll release. As a result today’s trading for the usd index has been desultory with the index confined to 82.59 to the upside and 82.29 to the downside with the 40 day average immediately below. Should this average be broken tomorrow by the nfp data then this will further confirm the technical picture on the daily chart which is beginning to adopt a bearish flavour, particularly we move below the 82 price handle which provided a degree of support to the recent rally higher in August. Should the index sink lower tomorrow the final barrier, and possible support area, will be triggered, namely the 200 day moving which currently resides in the 81.52 price region. Any move beyond here will signal a re-test of the low of August at 80.08 with a consequent decline of the US dollar against virtually all other major currencies.
Daily fx volumes reach almost $4,000bn
