Wednesday, August 26, 2009

USDCHF and USDCAD charts looking essentially the same

Bullish move in USD can be nicely seen on USDCHF and USDCAD charts. On both charts the price broke important trendlines that will now work as a support. Price has also broken 10, 50, 100 and 200 EMAs and unless we break back down (which is very unlikely now) the emas will stack up nicely in the correct bullish order. For today the move seems exhausted so you may want to close existing positions to realize profit and buy again on pullbacks to the 10 EMA. US equities are back in the red, risk aversion intensifies, high yielding currencies are sold in favor of USD. This move is not over yet. For now, stick to buying USD on pullbacks.

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