U.S. Dollar Stabilizes; Yen, Ruble Remain in Uptrends

Since we do them for sectors, commodities and foreign equity markets, we figured we would create our trading range charts for some of the major currencies. For those unfamiliar with these charts, the red zone represents 1 to 2 standard deviations above the currency's 50-day moving average. A move into or above the red zone is considered overbought. The green zone represents 1 to 2 standard deviations below the currency's 50-day moving average, and a move into or below the green zone indicates oversold territory.

To make the charts apples to apples all the way through, for each chart we use US $ per foreign currency. For the US $, we use the US Dollar index. As shown, the dollar has actually begun to stabilize, and it has broken its long-term downtrend. Currently, the currency seems to be in a consolidation period and definitely looks better than it did a few months ago.

While the dollar has begun to stabilize, the Euro remains in a longer-term uptrend, but it has also made a series of lower highs. The British Pound has really had trouble lately as their economy has struggled. The Japanese Yen and Russian Ruble remain in uptrends versus the $, while the Canadian Dollar, which soared versus the US $ in 2007, has formed a short-term downtrend.

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Comments

[User 142738]

I'm a bit confused by the Ruble graph: from XE.com and Yahoo! Finance, 1 RUB = 0.04 USD (approximately). Your RUB/USD seems to be the AUD/USD graph!