Courtesy of John Nyaradi
John Nyaradi’s ETF Edge on MarketWatch.com
Commentary: This move could change everything
By John Nyaradi
BEND, Ore. (MarketWatch) — While most investors watched a steady stream of red bleed across global stock markets last week, the U.S. Dollar made a stunning move that could be a complete game changer in weeks ahead.
The almighty greenback powered higher last week, rocketing through its 50-day and 200-day moving averages and hitting a six month high. Furthermore, it closed above its all important 200-day moving average for the first time since last September.
This is a significant technical event as the U.S. dollar tends to move in long trends that are easily tradable using simple trend following methodology. If the pop above the 200-day moving average holds, this could be a very significant turning point for the fate of the dollar and many other asset classes.
Last week was exciting for the dollar, and this week promises more of the same so let’s take a look at what is generating all of this trauma and drama and talk about why we should care about what happens to the dollar.
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