Spot on 200 DMA Breeds Currency Opportunity
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.