Sunday, February 8, 2015

USD US Dollar Weekly Chart Overbot Negative Divergence Developing

The parabolic move in the US dollar continues. Keystone has been updating it along the way and the weekly chart continues to point to upside, however, note the negative divergence developing (red lines) and the neggie d with RSI, histogram and stochastics created the spankdown to the low printed last week. The MACD is long and strong and wants to see another high in price after last week's low. Price is very overextended to the upside and needs a mean revision lower. 

The expectation would be for the dollar to recover over the next week or two and print at 96. At that time the MACD line will print a lower low and roll over so the top would be in for the dollar in this weekly time frame. The dollar will then digest the upside feast moving sideways through 93-96 into and perhaps through springtime. The dollar may move through 91-97 for the bulk of the year forward. The upside party for the dollar is finishing up probably during February, say within the next month. The monthly chart remains bullish so after several weeks of sideways digestion, say moving through 91-96 into spring or summer, the dollar should then take another leg higher moving above 96. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.

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