Real-Time Market Insights
Hot Stock News for Options Traders

Schaeffer's Short Takes: The U.S. Dollar Index Struggles with Its 80-Week Trendline

Examining the performance of the dollar against its 80-week trendline and its 10-week historical volatility

by 8/18/2008 11:35:29 AM
Stocks quoted in this article:

It's a little difficult to follow on the first chart, but ever since the dollar broke below its 80-week trendline the second quarter of 2006 it has not been retaken.

 WEEKLY CHART OF DX/Y SINCE DECEMBER 2004 WITH 80-WEEK MOVING AVERAGE

The declining 80-week moving average is currently at 77.64; the U.S. Dollar Index (DX/Y) closed on Friday at 77.12.

The second chart shows that increases in 10-week historical volatility (HV) to 10% and above have generally been associated with rallies in the dollar and have generally occurred near dollar peaks. The major exception occurred this year, when an HV surge occurred during the late stages of a downtrend, but now HV is surging again on the rally.

 WEEKLY CHART OF DX/Y SINCE MARCH 2000 WITH 80-WEEK MOVING AVERAGE AND 10-WEEK HISTORICAL VOLATILITY

The current 10-week HV for the dollar is 11.44% - it had actually moved briefly below 5% about a year ago.


<
Keywords:
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT

Partner Center

© 2014 Schaeffer's Investment Research, Inc. 5151 Pfeiffer Road, Suite 250, Cincinnati, Ohio 45242 Phone: (800) 448-2080 FAX: (513) 589-3810 Int'l Callers: (513) 589-3800 Email: service@sir-inc.com

All Rights Reserved. Unauthorized reproduction of any SIR publication is strictly prohibited.

Market Data provided by QuoteMedia.com | Data delayed 15-20 minutes unless otherwise indicated.