USD daily chart moves into congestion phase

Russell Shor, CFTe, MFTA FXCM

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.

Author

Russell Shor, CFTe, MFTA

FXCM

Russell Shor (MSTA, CFTe, MFTA) has an Honours Degree in Economics from the University of South Africa and holds the coveted Certified Financial Technician and Master of Financial Technical Analysis qualifications from the Interna

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