Sunday, December 4, 2011

Dollar- daily chart- short-term pullback

The Dollar is poised for a pullback, but to only set-up a higher low. I fully expect prices to find support at the 50 day moving average, possibly between the 20 and 50 day moving average, or even over shoot the 50. The 200 day moving average has now flattened out from its previous downward slope. Generally when a rising 50 day moving average is met with a downward sloping 200 day, a buy signal is given if the fundamentals are strong. The 10, 20 and 50 day moving average are in a bullish arrangement, and a rising 20 and 50 at that. The 10 day moving average is beginning to curl and should hold above the 20 before prices are ready to resume higher. The MACD is showing weakness and now touching the signal line. If we get a cross tomorrow expect both the MACD line and the signal line to remain above the centerline.

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