Friday, January 30, 2009

Forex Fridays

Notice the following on the weekly chart:

-- The dollar rallied strongly last yeat, moving from 71 to 88

-- The dollar has sold off and again rallied, but not to previous levels

-- The previous uptrend line first provided resistance and then support

-- The 20 and 50 week SMA are still moving higher

-- The 10 week SMA is moving lower and is about to cross over the 20 week SMA

-- The MACD is moving lower

-- The RSI is in a moderate position

Notice the following on the daily chart:

-- This chart shows the second rally in a far clearer way.

-- Regarding the second rally, notice the 10 and 20 day SMA are both moving higher but the 50 day SMA is moving slightly lower

-- The SMA picture is a lot more cloudy during the second rally. Notice that all the SMA are bunched together within a point or two of each other.

-- The MACD is still rising

-- The RSI is rising