USDOLLAR Downside Momentum Increases On the Daily

1 Jun 2020

The above chart shows FXCM's USD index, the USDOLLAR. It is below its EMAs, with the green 5-day EMA below the orange 13-day EMA, and the orange 13-day EMA below the black 34-day EMA. Moreover, all three EMAs are showing angle and separation to the downside (red ellipse). This is a sign of strong downwards momentum and as long as this formation holds weakness is likely to persist. We also note that the support around the 12,420 level (green shaded horizontal) has been broken to the downside. If price drops further, this level is likely to evolve from support into resistance.