FXCM's USDOLLAR basket is on the move. The left daily chart shows the basket is trading in its bullish channel between the upper blue and red bands. Moreover, the daily RSI is above 50 (black rectangle). If it maintains on the bullish side of 50, there will be an underlying bullish momentum on the daily timeframe.
The hourly chart on the right is also bullish. It shows a pullback to the 50% retracement level which coincides with the S2 support pivot. Since hitting this confluence of support, the USDOLLAR has bounced up. Its trend-following EMAs have crossed positively as has the momentum-based stochastic (black ellipses). If the stochastic moves into the 80+ area and holds (blue arrow), an underlying bullish momentum will be present that will likely be price supportive.
Senior Market Specialist
Russell Shor joined FXCM in October 2017 as a Senior Market Specialist. He is a certified FMVA® and has an Honours Degree in Economics from the University of South Africa. Russell is a full member of the Society of Technical Analysts in the United Kingdom. With over 20 years of financial markets experience, his analysis is of a high standard and quality.