US DOLLAR INDEX / UPDATE AS ON 10.8.10

update as on 10.8.10

us dollar index has tested 80 zone approximately and bounced from there with +ve divergence in daily chart as shown in attached chart.equity markets move in inverse direction normally.read more comments on charts.

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8.7.10

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.

MARKET

STOP LOSS LEVELS

SHORT TERM 18118/5431

MEDIUM TERM 17395/5210

LONG TERM  15960/4796

SO FAR WE ARE OBSERVING HIGHER LOWS AND HIGHER HIGHS.BE CAUTIOUS IN LONG POSITIONS.

ON WEAKNESS IN EURO US DOLLAR INDEX IS SHOWING STRNGTH AFTER TESTING APPRX 80  ZONE.DAILY CHARTS ARE 

SHOWING +VE DIVERGENCE AND PRICE IS ALSO SHOWING +VE ACTION. STRENGTH IN US DOLLAR INDEX MAY BRING 

WEAKNESS IN EQUITY MARKETS.