I have been using the 50 period simple (moving average) to gauge trend and one of the clearest forms of trend change came 9/27/2017 when it sliced through the 50 decisively and then continued marching higher until 12,097 about a week ago and then spend more time declining
The first arrow in yellow points out how fast price pulled back at the test of 11,900 and it was just the signal the dollar bulls needed to drive it to its price objective of approx. 12,100 there were plenty of sellers ready and willing to acquire Euros, Aussies, anything anti-dollar
The green rectangle acts as a buffer inbetween range points to tell whether levels are working as support or resistance and in our case right now its supportive at the upper border of the box at 11,962 that is also in close proximity to the second mean reversion [today's touch of the moving average]
Today's powerful bearish candle is exciting and somewhat climactic for the low volume trading environment of the Thanksgiving week, but it could be seen as a warning given what has happened to the dollar for most of this year.
No comments:
Post a Comment