Dollar Bumps Weekly Resistance

May 10, 2008: 2:02 PM CST

The US Dollar Index staged an impressive rally on the daily charts, but is currently failing to surmount resistance via the strong 20 period moving average on the weekly chart.

Notice how the falling 20 period moving average (exponential) has served significantly as overhead resistance, thwarting any rallies ever since late 2006.

Price recently tested the $74 zone, and is currently failing to penetrate the average, which could set-up a retest of the $71 area before a potential base of support is built… or the index could probe new lows.

At the same time the Dollar Index is set to make new potential lows, the CRB Commodity Index made a new high this week, potentially preceding a low in the Dollar.  Oil led commodities higher, testing an all-time high of $126 per barrel.

Let’s continue to watch these markets and how they may affect the overall US Stock Market, or particular market you’re currently trading.

1 Comment

One Response to “Dollar Bumps Weekly Resistance”

  1. Peter Says:

    did you see this – funny as hell – International symbol for Gasoline, almost fell off my chair laughing