Saturday, March 20, 2010

US Dollar Index -- Weekly Chart

We got the 13 week moving average looking to cross above the 55. That'll be a major buy-signal from a long-term perspective.

Now one might argue that relying on such a cross of moving averages doesn't work, because by the time the signal reverses, much, if not all, of your gains will have evaporated. That may be true, I suppose, but only if you are dumb enough to use the same technical indication to exit a position as you did to enter it. Using a single indicator like that works sometimes for certain markets, but for a situation like the dollar index here, there will be plenty of other means to time an exit.