Dollar index’s daily chart shows a golden crossover. The bullish cross is a lagging indicator and often marks temporary tops. The dollar index, which tracks the value of the greenback against majors, could be nearing an interim top, as a big-time lagging indicator has turned bullish for the first time since June 2018. The 50-day and 200-day averages have produced a golden cross, an indicator of the long-term bull market. The averages, however, are based on past data. Hence, crossovers tend to lag price, especially the longer duration ones. Put simply, a golden cross is the result of a strong rally and has limited predictive powers at best. More often than not, an asset is overbought by the time the crossover happens and witnesses correction post-crossover confirmation. The 14-day relative strength index of the dollar index is reporting overbought conditions with an above-70 print. A a result, the DXY may struggle to hold onto gains above 100, if any. On the downside, the 200-hour average, currently at 99.19, could work as strong support. At press time, the DXY is seen at 99.84. Daily chart Trend: Neutral Technical levels FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next USD/INR stays below 72.00 as Indian markets are off amid broad risk aversion FX Street 2 years Dollar index's daily chart shows a golden crossover. The bullish cross is a lagging indicator and often marks temporary tops. The dollar index, which tracks the value of the greenback against majors, could be nearing an interim top, as a big-time lagging indicator has turned bullish for the first time since June 2018. The 50-day and 200-day averages have produced a golden cross, an indicator of the long-term bull market. The averages, however, are based on past data. Hence, crossovers tend to lag price, especially the longer duration ones. Put simply, a golden cross is the result of a strong… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
