News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
GBP/USD
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • *Reminder: Weekly Strategy Webinar tomorrow morning at 8:30am ET on DailyFX! https://t.co/lxd5fZ5LG7
  • (Weekly Fundy) Crude Oil May Rise as Covid Case Growth Slows. WTI Eyes OPEC Outlook, Evergrande #CrudeOil #WTI #OPEC #Evergrande https://www.dailyfx.com/forex/fundamental/forecast/weekly/title/2021/09/26/Crude-Oil-May-Rise-as-Covid-Case-Growth-Slows-WTI-Eyes-OPEC-Outlook-Evergrande.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/76e2aGf3p0
  • Recessions can devastate the economy and disrupt the fortunes of individuals, businesses, and investors. But economic decline in the business cycle is inevitable, and your trading can be defined by how you respond to crisis. learn how to prepare here: https://t.co/e4Cnoc1dk0 https://t.co/NhsMS1EY4b
  • We are heading into the final trading days for the month of September and event risk thins out amid the $SPX's rebound. This is what history says for the 39th week of the year and here is my take on the variable factors: https://www.dailyfx.com/forex/video/daily_news_report/2021/09/25/SP-500-and-Dollar-Have-Different-Views-for-Last-Week-of-September.html https://t.co/4OBVmrvI7I
  • Further your forex knowledge and gain insights from our expert analysts on AUD with our free guide, available today: https://www.dailyfx.com/free-trading-guides?ref-author=social#forecastschoices=AUD?QPID=30472&CHID=9 https://t.co/LHJi7CNFmM
  • $EURUSD https://t.co/KZyXX6p2oI
  • The ISM manufacturing index plays an important role in forex trading, with ISM data influencing currency prices globally. Find out about the recent history of ISM data, how to track it, and how to trade its release here: https://t.co/MZtBh8pYG3 https://t.co/1zNf5dpDjU
  • The continuity seen across these volatility cycles is a good thing. Historical precedence offer a blueprint for identifying conditions supportive for a vol-event to occur, and how they may unfold. Deepen your knowledge of historical volatility here: https://t.co/vg7w10la3j https://t.co/z8z6BNudn5
  • #PELOSI SAYS WE ARE GOING TO PASS THE INFRASTRUCTURE BILL THIS WEEK PELOSI SAYS SHE WILL NEVER BRING TO THE HOUSE FLOOR A BILL THAT DOESN'T HAVE THE VOTES TO PASS $USD $SPX $XAUUSD
  • Short-term uncertainties to keep the pressure on equity markets. Get your weekly equities forecast from @JMcQueenFX here: https://t.co/JLMDPZKvN8 https://t.co/YbdJnwoqj1
USDollar Technical Analysis: Dollar Drops Below 200-Day Moving Average

USDollar Technical Analysis: Dollar Drops Below 200-Day Moving Average

Tyler Yell, CMT, Currency Strategist

To receive Tyler’s analysis directly via email, please SIGN UP HERE

Talking Points:

  • USDollar Technical Strategy: Bearish Bias Begins to Take Over
  • Break Below September 18th Low Allows for Downside Targets To Be Favored
  • RSI(5) Divergence Plays Out And Could Drag USD Lower

The US DOLLAR recently dropped below the 200-day moving average. A move below the 200-day moving average is one of the first widely accepted rules of chart followers to exit long positions. Even though the 200-day moving average rule is widely held, sharp selloffs, if they occur at all, often take time to develop. However, when the 200-day moving average is broken, a typical shift in the mood of a financial instrument takes place. Therefore, the moving average in relations to ‘King Dollar,’ deserves to have your focus front and center.

We recently stated, ‘the long side will continue to be favored absent a daily close below 11,865, which would alter the ascending triangle view into a more bearish stance of a potential triple rounded top formation.’ We have yet to see a daily close below 11,865. However, you can see the newly drawn red bearish channel favors that outcome eventually. Currently, the October 14th daily bar can bring some guidance. As a Bearish Key Day Bar, the daily high of 11,970 should act as a short-term bias point such that price remaining below 11,970 should keep the focus lower. Before the high of Wednesday’s bar, the 61.8% retracement of that daily bar sits at 11,931. This 39 point range is worth short-term focus.

Another discouraging technical development for the Dollar Bulls is RSI (5) divergence. Divergence happens when price pushes higher as momentum tracks lower. Because momentum is seen as a leading indicator when price catches up or reverts to move and direction of momentum, a reversal can take place. Should price remain below the resistance mentioned above of 11,970-11,931, and eventually close below 11,865 while RSI (5) stays below the trendline resistance, the bearish outlook will remain favored. T.Y.

Add these technical levels directly to your charts with our Support/Resistance Wizard app!

USDollar Technical Analysis: Dollar Drops Below 200-Day Moving Average

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES