USDOLLAR Daily RSI Sequence Serves as a Warning
Chart Prepared by Jamie Saettele, CMT using Marketscope 2.0
-“A double top target remains at 10623 and today’s (5/5) reversal at the breakdown level from that pattern is viewed in a bearish light. The 1/15 low at 10584 is also of interest for support.”
“The low for the move is thus far 11634. It’s interesting to note that USDOLLAR has made turns in the middle of the month each month so far in 2015. With that in mind, this rally may have legs for at least 11900s before coming under significant pressure. Watch 11740 or so for support.”
-The USDOLLAR may yet reach 11900 as the turn down the last day is immaterial. However, note that RSI has stalled near 50 after advancing from below 30. This sequence often precedes weakness (just as RSI dips into 50 from above 70 precede strength).
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.