Thursday, January 31, 2013

Dollar Is At Critical Technical Support

The daily dollar chart (top chart) is approaching the 21.6/21.5 level, which is a critical technical support level.  Also note the overall bearishness of the chart: prices are below the 200 day EMA as are all the shorter EMAs, the MACD is is below 0 and declining, the CMF is negative and there was a big volume spike on yesterday's move lower.

The weekly dollar chart (bottom chart) shows more bearishness as well.  Prices are below the 200 week EMA as are the shorter EMAs.  The MACD is below 0, although the CMF just turned positive.