The Dollar is at the Edge

The US Dollar has been in a downtrend for 14 months. Ever since the beginning of 2017 it has been falling. It had a respite last fall, a brief drift higher, but then continued to the downside at the end of the year. January was another bad month for the greenback but then it found support at the beginning of February. Another hopeful bounce faded quickly though and it retested the low. Now a second bounce is threatening to break out to the upside again. Will this one follow through?

There are four things to watch to get comfortable that the US Dollar will sustain a move higher. The first is always the price action. As long as the Dollar keeps moving up its prospects to continue are good. Momentum as measured by the RSI moving above 60, into the bullish zone is the second indication. A third is the MACD moving over zero into positive territory. Finally the Bollinger Band® channel turning higher. It can continue higher without all 4 of these. But with all four it presents a strong case for continued upside. Keep watching.

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The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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