U.S. Dollar Index Finds Support Around 80

The U.S. Dollar has been stabilizing for a short period of time on its support level of 80. The dollar index has gone all the way down to 70 and then skyrocketed up to just below 90 this year as well. Many people might ask themselves why there is so much buying interest in the dollar currently. The dollar went up to 90 for a couple reasons. One is because of the "Global Recession". This caused many investors and governments to invest in the Dollar's "safe haven" status. Shorts also had to be covered when the dollar fell all the way to 70 as the recession fears took overwhelming majority in 2008. These bears quickly gave way and covered the shorts and then speculative buying also occurred shortly afterwards. Soon after this head fake the dollar continued to fall all the way past 80. Now is an important time for the dollar index. It may hold its support level near 80 or it may fall right through it and quickly test its yearly lows.