Friday, April 3, 2009

Forex Fridays

The weekly chart tells us the dollar has formed a double top. First, note the obvious price action. However, also note that the second top had a lower RSI than the first, indicating the second top was far less powerful price than the first top. Also note the same is true with the MACD -- which is also declining. Also note that prices tried to rally through the 20 week SMA but could not make it.

On the daily chart:

-- The 10 and 20 week SMA have moved through the 50 week SMA, although the 10 week SMA is moving higher

-- The 20 week SMA is still moving lower

-- The RSI is weakening

-- The MACD is moving lower