USD daily chart moves into congestion phase
The above chart shows daily price action. The USD’s green 5-day EMA has crossed below its orange 13-day EMA. This has effectively ended the bullish EMA formation. Therefore, the USD has moved from a mark-up phase to a neutral or congestion phase, until proven otherwise. Technical analysis views the “trend as your friend” and it is generally easier to trade trending markets. As such, one need to be very discerning with trades until the USD begins a trending move albeit either a mark-up or a mark-down phase. Given our previous article, this may be a correction in the longer-term chart, perhaps a test of the 30-week EMA.
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.