US DOLLAR INDEX

LOOK AT CHART OF US DOLLAR INDEX ATTACHED HEREWITH.ITS MOVEMENT MAY GUIDE 

US FOR FURTHER MOVES IN EQUITY MARKET.BELOW 83.3LEVEL NEXT SUPPORT ZONE IS 

BETN 80 AND 82 ZONE . 200 DMA IS NEAR 82 AND 200EMA IS SHOWN IN CHART.NORMALLY 

WEAKNESS IN US DOLLAR INDEX HAD HELPED FOR UP MOVES IN EQUITY MARKETS AND 

GOLD.

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Sunil Doshi said...

Please explain US-Dollar Index in Detail

July 16, 2010 11:51 AM 

us dollar index is explained very well in following link.

http://en.wikipedia.org/wiki/U.S._Dollar_Index

normally its movement is inverse to equity market movements.i had given observations in past in this link.

http://pankaj564.blogspot.com/2010/02/us-dollar-index-as-on-922010.html

MARKET

look at sensex daily and weekly charts attached.

us dollar index has tested 200 ema zone at 82. it is over sold in short term and we may see a bounce from here in us dollar index .still we are correcting in a downward parellel channel.break out from channel on higher side will be harmful for equity markets.further weakness in us dollar index will benefit equity markets.

attached chart is old chart.

sensex has made higher top at 18167 (prev top at 18048).weekly candle stic is inverted hammer.break of 17855 low of current week may bring further weakness.break of 17400 on closing basis will confirm end of upmove started from 15960.on daily chart support is at 17800.50 day ema is also around 17400.

power sector has not performed yet.

in US market all 3 indices has closed below 200 ema.

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