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Notice the following on the weekly chart:
-- Prices rose 22% from the end of July to December
-- Prices hit upside resistance at price levels established in 2006
-- All the SMAs are increasing
-- Prices are above all the SMAs
-- The shorter SMAs are above the longer SMAs
BUT:
-- The RSI is very overbought and
-- The MACD is overbought
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Notice the following on the daily chart
-- The uptrend started in July is still intact
-- Prices have stabilized in a 3-4 point range
BUT
-- The 10 and 20 day SMA are both moving more sideways than up
-- Prices are entangled with the 10 and 20 day SMA
-- The RSI is decreasing
-- The MACD is decreasing
Bottom line: technical indicators at the weekly and daily levels are pointing to this rally being over. The SMA/price situation on the daily chart is adding to that conclusion. Keep your eyes open for a fundamental catalyst to move the dollar lower
