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Edited by: munKNEE.com – Your Key to Making Money
The U.S. Dollar Index took a breather on Thursday on its apparent way down and through its
support line of 79.00 closing the day at 79.26 vs. 79.27 on Wednesday well below its 50 day moving average of 80.16.
So says Lorimer Wilson, editor of www.FinancialArticleSummariesToday.com (A site for sore eyes and inquisitive minds) and www.munKNEE.com (Your Key to Making Money!). “Follow the munKNEE” on Twitter & Facebook
Daily Close
The downward trend of the U.S. Dollar Index took a breather on Thursday closing at 79.26 just 0.01 down from the previous day but continuing down, nevertheless, from its close of 79.58 last Friday and 80.42 the Friday before that.
Intraday Low
The intraday trading low on Thursday was identical to that on Wednesday at 79.01 compared to an intraday low of 79.26 0n Tuesday and 79.47 0n Monday.
50 Day Moving Average
In addition, the U.S. Dollar Index continues to drop further and further below its 50 day moving average of 80.16 which suggests further weakness to come.
Check out this chart for the most recent U.S. Dollar Index moves and the long-term chart below showing a potential bearish Head and Shoulders pattern from Chris Kimble (http://blog.kimblechartingsolutions.com)
CLICK ON CHART TO ENLARGE
U.S. Dollar Relationship to Euro-Dollar Ratio and the Australian Dollar
When the euro-dollar ratio and Australian dollar head higher, the majority of the time they…put downward pressure on the U.S. dollar. Currently, the Euro-Dollar and the Aussie dollar are both attempting to break above falling resistance lines (see these charts from Kimble Charting Solutions) that have been in place for almost a 18 months suggesting possible further weakness in the USD. As such, keep an eye on what these important currencies do because they are often quality leading indicators for important macro moves.
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