USDOLLAR Challenges 20-DAY SMA as Risk Aversion Dominates

Apr 21, 2020

The left chart shows FXCM's dollar index, USDOLLAR, challenging its black 20-day SMA. We note that, the RSI is looking to move to the bullish side of 50 (blue rectangle). If it does and the index pushes above the SMA, with the SMA turning up than risk-aversion is likely to dominate. The right chart shows the hourly time frame. Here, we can see that the EMAs are in bullish mode and the RSI is comfortably above 50. If the hourly holds these dynamics, we should see the greenback overcome the daily SMA resistance.