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:
If the pound goes the way of the dollar and euro, $1.555 is the price to watch.
Ian Mathias
Ian Mathias is the managing editor of Agora Financial’s Income Franchise, where he writes and researches about retirement, dividend and fixed income investing. Much of his work is featured in The Daily Reckoning and Lifetime Income Report – Agora Financial’s flagship income investing advisory.
Previously, Ian managed The 5 Min. Forecast, a fun, fast-paced daily look into the future of global markets and macroeconomics. He’s also worked in public relations, where media outlets like Forbes, AP, Yahoo! and MSN Money have syndicated his writing. If he’s not at work, you’ll probably find Ian on a bicycle, racing up and down the “mountains” of Baltimore County. Ian has a BA from Loyola University in Maryland.
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