U.S. Dollar Index Reverts Back To It’s Losing Ways

This morning the U.S. Dollar Index (DXY) is declining lower by 0.34 cents to $76.05. Last week, the U.S. Dollar Index staged a small bounce on the daily chart, however, today the U.S. Dollar Index failed to trade above it’s daily chart 20 moving average. Please note that the DXY remains below all of the major moving averages and this puts the U.S. Dollar Index in a down trend. The U.S. Dollar Index has declined lower by 15.0 percent since June 7, 2010.

When the U.S. Dollar Index declines it will usually help to inflate asset prices. Many people that are retired and live a fixed income really feel the effects of a declining dollar the most. Costs of all the goods that individuals need to survive will increase higher. Food and energy are two products that will increase the most when the U.S. Dollar Index declines. The recent food riots around the world have been blamed on the declining U.S. Dollar Index. Should the U.S. Dollar Index trade below it’s recent low of $75.24 the next important daily chart support would be around the $74.22 level which is the low made on November 24, 2009. The all time low for the U.S. Dollar Index was $70.69 made on March 17, 2008.

About Nicholas Santiago 576 Articles

Affiliation: InTheMoneyStocks.com

Nicholas Santiago started trading in 1991. In 1997, he became a licensed Series 7 and 63 registered representative. He managed money for a large, affluent private client group. After applying his knowledge to his client base, he decided it was time to begin teaching those interested in learning his methods. He is an expert in Technical Analysis. He has become an accomplished technician in the studies of Elliot Wave, Gann Theory, Dow Theory and Cycle Theory. In 2007, he partnered with Gareth Soloway to form InTheMoneyStocks.Com and realize his dream of educating others about the truth of the markets.

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