Do currencies (ULE) follow normal Technical Analysis? If so, I'd say it is stretched away from its moving averages and due for a pull back unless we bust through the ceiling at 17.50 and skyrocket. What does the master say?

Comments (5)
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shmcc2000
shmcc2000

Editor

Yes, but it doesn't mean they act exactly like stocks. And even certain stocks act differently. Ex. gold stocks and emerging market stocks are very volatile while a utility stock generally is not. In a similar fashion, currencies have their own separate personality from stocks too. All you have to do is to look at a long-term chart (weekly, 10-year chart preferably) to get an idea of the history of how a particular currency moves. Because they can respond differently. For instance, the British pound is known for being extra volatile. The Swiss franc tends to have lower volatility (in general).

shmcc2000
shmcc2000

Editor

So with that said, currencies can stay away from their 200-day moving averages much longer than stocks, in general. So I'd not suggest trading in and out of it.

shmcc2000
shmcc2000

Editor

It's next major resistance area is its 200-week moving average around $18.62.

WGoodwin
WGoodwin

Thanks for the lesson Sean! There's lots to digest there.

shmcc2000
shmcc2000

Editor

You're welcome.



shmcc2000
shmcc2000
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