MOVING AVERAGE CROSSOVERS
We are paying close attention to the 20/50-Day SMA pending negative cross in Cable today. The last time the 20-Day SMA crossed below the 50-Day was back in August 2008 and we contend that another negative cross could indeed warn of deeper medium-term setbacks. Moving average crossovers are particularly effective when they have not occurred for an extended period of time and are a useful tool for analysis of the markets. The bearish cross could potentially project a drop back towards the 1.5000 area initially. However, we have not seen a cross just yet……stay tuned.
Written by Joel Kruger, Technical Currency Strategist for DailyFX.com
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