Friday, December 11, 2009

Forex Friday

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A.) The dollar was in a downward sloping pattern for the last few months.
B.) Prices have moved through the upper trend line, printing a strong bar earlier this week. Now prices are finding support on top of the 50 day EMA.
C.) The MACD has moved with the momentum, indicating traders are moving into the security.
D.) The RSI indicates that prices are strengthening.
The central question to this chart is "is this actually a change in the trend or a quick pop up?" The main test of that theory will be if prices stay above the EMAs.