USDOLLAR's 20-DAY SMA Holding Resistance

8 May 2020

The charts refer to FXCM's USD index (USDOLLAR). On the left, the daily chart shows that the index tried to overcome its black 20-day SMA resistance but was unsuccessful (aqua ellipse). The SMA remains pointing down and the daily RSI is on the bearish side of 50. The right chart shows the hourly time frame. Here too, the RSI denotes an underlying bearish momentum (green rectangle). If the EMAs develop angle and separation to the downside, the greenback will be under pressure as risk-sentiment moves capital towards risk-on instruments.