USDOLLAR Moves Into Risk-Off Mode

28 Apr 2020

FXCM's USD index, USDOLLAR, has moved into clear risk-off mode. The left chart shows the daily time frame. The index has rejected off of the black 20-day SMA and is moving down. Moreover, the SMA is starting to turn lower, whilst the RSI is also below 50 (blue rectangle) and is suggestive of a bearish momentum. The right chart shows the hourly time frame. Here, the EMAs have turned bearish (red rectangle) and the hourly RSI has crossed below 50 (green rectangle). The greenback is dropping as the Fed's unlimited QE policy takes hold, supporting the risk-on side of the market.