Dollar Index: This 200 day M/A will be crucial
|$Index fell sharply yesterday...but held up well just above the 200 day M/A...This comes in at6 98.58 today...We haven't had a lot of movement today...well we wouldn't really until the US opens....
This 200 day M/A will be crucial....if we break this then the $ will come under increasing pressure and we might even be able to say that the $ uptrend is about to end.. Now I know we have seen $ weakness the past few months but we have been thinking it was just possibly a correction....but where can it correct too...well we lost 98.50 and it can correct down to 9630....and that would make the next few weeks even worse for the $...
Monthly charts are not looking too great and as I have said previously. The decline in the $ from 2001 to 2009 has only seen a correction back to just above the 61.8 Fib...This is quite important to long term Hedge funds.. institutions etc....There was no apparent reason the $ Index topped out at 10380....so please...just be aware that trends change...and we could well be looking at a new tred starting which is the resumption of the old long term downtrend....Some traders/analysts do not look back at historical data as I do.. therefore they do miss certain things....
I like to see trend changes...They fascinate me...and although too soon to tell from 10380 to 9865 is quite a move down....so of course you are hearing people say its too low....Do you know.. If I had a $ for every time I had heard this over 35 years I would never have to work again....
Now all the while we can hold above 9850 there is scope for retracement and I can see it going back towards the 100.80/101 area... but I think this is where it will top out...
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.