The USDOLLAR pulled back yesterday after registering as overbought on the daily time frame and running into resistance. Here we take a look at the 1 hour time frame. FXCM's dollar index is bouncing off of the 50% Fibonacci retracement support level. We can also see that the RSI has moved above 50 (blue rectangle), which is the bullish side of the oscillator....
Here we see the daily chart of FXCM's USDOLLAR index. We note that the green 5-day EMA is above the orange 10-day EMA with good angle and separation. This is indicative of the strong upwards momentum of the greenback. However, technically, the index has run into overhead resistance (red shaded horizontal) at a time when the RSI is overbought (in excess of 80)....
The JPY is regarded as a safe haven and tends to be sold down when there is less uncertainty in the market. This being the case it is interesting to note that FXCM's JPY index - the JPYBasket - is showing signs of weakness i.e. its green 5-day EMA has crossed below its orange 10-day EMA. Moreover, the latest candlestick shows a long range red candlestick...
