One of the best ways to keep up with the overall strength of the US dollar is to monitor the US Dollar Index (NYBOT:DX). This index measures the strength of the dollar against a basket of different currencies including the GBP, EUR, JPY, CAD and CHF.

Anyway in recent weeks we have obviously seen the dollar weaken against many of these currencies and therefore as a result the dollar index has also fallen. In fact is has fallen from just under 90 to it’s current level which is around the 79 mark.

So how much further could this index fall and is the dollar likely to fall much further?

Well I’ve just finished watching a short trading video that argues the case that the price of the Dollar Index may well have a lot further to fall yet (target price = 72-74), which obviously means that the dollar as a whole is likely to weaken further. Take a look at this video and see what you think.

 

 

Filed under: Forex

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