Friday, March 13, 2009

Forex Friday's

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The weekly chart shows the dollar is deciding whether it wants to form a double top or continue rallying. In the "continuing to rally" camp there is a bullish indication from the MACD, the fact that prices have moved through previous highs the fact that prices are still in a confirmed uptrend. In the "we're forming a double top" camp is the lower RSI for the second peak than the first peak along with the weak candles at the very top (a spinning top followed by a strong move down).


On the daily chart notice the following:

-- Prices have broken through the trend line started in mid-December

-- The MACD is giving a sell signal

-- Prices ran into a lot of resistance around the 89 level, which is just above the previous peak

-- Prices have moved through the 10 and 20 week SMA