For what it’s worth, and it may be more interesting than anything else, the dollar index is about to experience a death cross with the 100-day simple moving average, currently 81.823, about to drop below the 200-day simple moving average, now at 81.775. The index itself last trading around 80.392.
Though there are several versions of the dollar index, the most popular comprises six components with the euro, at 57.6 percent, Japanese yen, 13.6 percent, British pound, 11.9 percent, Canadian dollar, 9.1 percent, Swedish krona, 4.2 percent and Swiss franc, 3.6 percent.
You can’t actually trade the index though you can buy futures and options on it. But people look at it, no matter how imperfectly, as a way of gauging the broad direction of the dollar -- even though with more than half of the weighting being the euro it’s really a call on the direction of the euro.
Having said that for now the technical signal confirms what many have been forecasting, a week fourth quarter for the dollar.