U.S. Dollar Golden Cross

The US Dollar index has made a "golden cross" today, as its 50-day moving average has crossed above its 200-day moving average as both are rising.  The "golden cross" is viewed as a positive by market technicians, as it is thought to signal a significant favorable turning point.  Regardless of your thoughts on technical analysis, the chart below highlights a clear shift in the Dollar over the last few weeks.

click to enlarge

Comments

[css1971:]

"The "golden cross" is viewed as a positive by market technicians, as it is thought to signal a significant favorable turning point."

Is that like the stars being in the correct alignment?

2008 Sep 03 12:40 PM

[MarvinMBA:]

Could it be that our trading partners in Europe and around the world are in more domestic economic trouble than the good old USA???

2008 Sep 03 05:51 PM

[Coelacanth:]

Too funny....it's always painfully obvious me when people who don't trade in currencies comment on these threads.

Good work Bespoke Investments! Your technical indicator is a positive sign. After seeing many candlestick "hammers" & "shooting stars" on USD daily charts last night it wouldn't surprise me to see an interim dollar correction coming. After this week I'll probably step aside a few days as nothing would make me happier than getting long dollars in to temporary weakness.

2008 Sep 03 08:24 PM

[kkin365:]

Reading comments by currency traders, such as those shown above, I got the impression that it takes a lot of specialized knowledge to be in the game. I am too dumb to even understand what you are talking about.

2008 Sep 04 10:54 AM

[OldLimey:]

kkin365: Think "self-fulfilling prophecies" and you'll be on the right track.

2008 Sep 04 02:55 PM