USD Index Chart 3 Aug 2010
The usd index continued its bearish momentum yesterday ending with a wide spread down candle pushing the index lower and through 81 as a result but failed to breach the 200 day moving average which now sits immediately below. However, in early trading this morning the index has now breached this key technical level as it trades at time of writing at 80.56. Should we see a close below this key level then this will signal a deeper decline for the index and a weaker dollar as a result, and should the lower level of potential price support at 79.63 also fail to hold, then this could signal the start of an even sharper move lower back towards 78 and beyond.
