Friday, December 12, 2008

Forex Friday's



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Notice the following on the weekly chart

-- Prices rose 23% over the last 5 months

-- All the SMAs are still moving higher

-- The shorter SMAs are above the longer SMAs

-- Prices have now moved through the 10 week SMA

-- The MACD is overbought

-- The RSI is overbought and declining



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Notice the following on the dollar's daily chart:

-- Prices are still in an uptrend,

BUT:

-- During the consolidation the RSI and MACD decreased

-- Prices are now below the 10, 20 and 50 day SMA

Bottom line: technically, this chart wants to go lower. Fundamentally the failure of the Detroit bail-out will help to add downward momentum.