While the dollar index is tracking lower early today, the definitive rejection of yesterdays strong spike down washout certainly tempers the bear case. Further, it would appear that yesterdays low of 92.70 is some form of important technical level as that level saw 3 consecutive closes clustered at that level and it appears that selling is quickly dried up at that level yesterday. In retrospect, it seems that the dollar has regained interest as a safe haven instrument even though anxiety in the marketplace is currently benign. U.S. claims data from yesterday rekindles fear that the U.S. recovery pace is slowing and it goes without saying that the inability of the U.S. senate and the ECB to provide assistance, adds to interest in the dollar. For the time being, the 92.70 level could be a target but without a very positive economic/psychological headline we doubt the index will punch below that level.

USD Weekly Chart
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Tony Cholly

Senior Market Strategist
Tony majored in Economics at Eastern Illinois University. He performed his thesis on the market price of corn in the market and the factors that affect it. Tony was drawn to futures trading because of the opportunity to have financial gains in an economic environment. He prides himself on working with customers one-on-one and developing a trading strategy based on the client's needs and wants.
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