Friday, January 8, 2010

Forex Fridays

Note the really big volume spike in the dollar ETF in late November. Also note the big volume increase after the rally started.

A.) This is a very strong downward sloping trend line, which

B.) Prices broke through in mid-December.

A.) After rallying, prices are currently in a downward sloping pennant pattern.

B.) The EMA picture is very bullish -- the shorter EMAs are above the longer EMAs, all the EMAs are rising and prices are currently above all the EMAs.

A.) Momentum has given a sell signal. Also note

B.) That volume is moving in and out of the security pretty quickly -- traders are not sticking around but instead are dumping the security on a moment's notice.