The dollar is breaking down below its 50-day moving average, based on the U.S. Dollar Index, says Bespoke Investment Group.
As shown below, the currency has been in a very nice uptrend for quite a while, but that uptrend is now in serious jeopardy. Yesterday the dollar initially traded well below its 50-day and then fought back but couldn’t quite close above it. Today it briefly traded above the 50-day — which is now acting as resistance instead of support — but it failed to hold by the end of the day.
We’ll need some further signs of U.S. growth plus more Eurozone pain to beat this rut:
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