Friday, April 9, 2010

Forex Fridays

Notice that over the last three days, the dollar has been trading in a fairly tight trading range.

The overall uptrend (a) is still intact. Additionally, the moving averages are still in a very bullish orientation. However momentum (c) is weak and the A/D line (d) is as well.

Fundamentally, the dollar has risen not because it's strong but because the euro is weak. Traders are concerned that Greece will default on their plans within a year. As a result, they have been selling the euro and buying the dollar.