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.

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
EUR/USD
Bearish
Oil - US Crude
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
Wall Street
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
Gold
Bearish
GBP/USD
Mixed
USD/JPY
Bearish
More View more
Real Time News
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.56%, while traders in NZD/USD are at opposite extremes with 71.14%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/slgUxPLCHv
  • The Japanese Yen is attempting to mark a third consecutive weekly advance against the US Dollar with USD/JPY down 0.34% ahead of the New York close on Wednesday. Get your $USDJPY market update from @MBForex here:https://t.co/3XJc7NHZGl https://t.co/zoZN5l2FGW
  • Indices Update: As of 18:00, these are your best and worst performers based on the London trading schedule: Germany 30: 0.27% France 40: 0.23% FTSE 100: 0.05% US 500: -2.83% Wall Street: -2.92% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/tPui0dstvl
  • Gold has slipped a 7-month rising support despite it being a 'risk off' day for the markets (overlay is $SPX). Roles - like the metal representing a haven - are not always linear and dominant https://t.co/hSqu6E9HQv
  • Update on #Cryptocurrencies #BITCOIN -3.05% #BITCOINCASH +4.24% #ETHEREUM -4.53% #RIPPLE -1.91% #LITECOIN -3.36%
  • Japanese #Yen Outlook: $USDJPY Dives into Key Technical Support Pivot - https://t.co/vzJ2u0MUbS https://t.co/4NE2BirSlY
  • Really glad I’m not the only one who thinks like this https://t.co/kGQ6p4HO61
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.56%, while traders in NZD/USD are at opposite extremes with 70.66%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/kYXsXPuSmJ
  • Commodities Update: As of 16:00, these are your best and worst performers based on the London trading schedule: Gold: -1.32% Silver: -3.74% Oil - US Crude: -5.35% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/1IZV4KJruu
  • More weakness in Eurozone economic data coupled with a surge in COVID-19 cases has seen ECB interest rate cut expectations pulled forward, and the odds of surprise action at the October meeting are non-zero. Get your market update from @CVecchioFX here:https://t.co/JdP6FXyQXF https://t.co/88FWLMNtTu
USDollar Technical Analysis: Dollar Drops Below 200-Day Moving Average

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

2015-10-19 20:01:00
Tyler Yell, CMT, Currency Strategist
Share:

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