The FXCM EMBasket is an equally weighted basket of four emerging market currencies against the USD. The basket comprises:
South African rand.
November 2020 to September 2021 saw the EMBasket charting a sideways distribution pattern (red rectangle). It then moved into a mark-down phase, with the basket candles below the 30-week exponential moving average (EMA), and the EMA pointing down. The RSI, during this phase, was below 50, denoting downward momentum (orange rectangle).
From July 2022, the basket has drifted sideways in an accumulation pattern (green rectangle). It has now crossed above its 30-week EMA and the EMA has turned up. This is bullish. The RSI has moved above 50 (blue rectangle), connoting an underlying bullish momentum. The longer this maintains, the greater the chance of further appreciation ahead.
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.