Forex Friday

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Notice the following on the weekly chart:

-- Prices have rebounded from a low of 72 at the beginning of July to a current high of 88. This is a rebound of 22% in 5 months.

-- Prices are above all the SMAs

-- All the SMAs are moving higher

-- The shorter SMAs are above the longer SMAs

BUT

-- The RSI is overbought and

-- The MACD is is overbought



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Notice the following on the daily chart

-- Prices are clearly in an uptrend that has lasted for 4 months

-- Prices have continually moved through previously established resistance levels

-- All the SMAs are moving higher

-- The shorter SMAs are above the longer SMAs

-- Prices are above all the SMAs

BUT:

-- Prices are consolidating in an upward sloping triangle

-- The 87-88 handle has proved difficult for prices to move through

-- The MACD is sloping downward

-- The RSI is overbought

Bottom line: the rally looks like it is petering out.

As an added bonus, notice that commodity prices started to drop when the dollar started to rally.

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Remember that commodities are priced in ... dollars.