Skip to content

Spot on 200 DMA Breeds Currency Opportunity

By Ian Mathias

05/20/09 Baltimore, Maryland Keep an eye on 200-day moving averages in the currency world. Sometimes these technical indicators don’t mean squat… but they’ve been pretty spot on lately.

Early this month, the dollar index fell below its 200 DMA for the first time since July 2008, and has been falling ever since. Not long after, the euro popped above its 200 DMA, and has rallied 2 cents since.

Today, history looks poised to rhyme… if not repeat:

phpCwlKiE

If the pound goes the way of the dollar and euro, $1.555 is the price to watch.

Author Image for Ian Mathias

Ian Mathias

Ian Mathias is managing editor of The 5 Min. Forecast.  We discovered Ian working as a full time rock climbing guide and writing on the side. As it turns out, markets and global economics can be extreme too… at least enough to keep him around. Since working for Agora Financial, respected media outlets including Forbes.com, the Associated Press, Yahoo, and MSN Money have syndicated his writing. He received his BA from Loyola College in Maryland and is currently studying writing at the graduate level.

Special Report: From Hulbert’s No 1-Ranked Advisory Letter Over 5 Years, GOLD $2000 REPORT : Five entirely new ways to play the gold trend and a hidden way to snap up gold- for less than one penny per ounce!

View articles by Ian Mathias

The articles and commentary featured on the Daily Reckoning are presented by Agora Financial. Additional market commentary is available through The 5Min Forecast . Follow the Daily Reckoning on Twitter and Facebook .

Sign Up for The Daily Reckoning e-letter and receive a chapter from the new Financial Reckoning Day... FREE!

  

We Will Not Share Your Email.
We Value Your Privacy.

Related Articles:


0 Responses

Some HTML is OK

(never shared)

or, reply to this post via trackback. Our Comment Policy.