Don't Ignore This Chart!

Dollar Index breaks 12-month SMA

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The 12-month SMA provides a pretty good clue on the overall direction for the US Dollar Index ($USD). There have been six crosses since 2002. Downside breaks captured long downtrends in 2002-2004 and 2006-2007. The upside breaks produced relatively short rallies that lasted almost a year. The current rally is four months old with an upside cross in February.

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Arthur Hill
About the author: , CMT, is the Chief Technical Strategist at TrendInvestorPro.com. Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London. Learn More
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