US Dollar has made a "Golden Cross"

As noted in BespokeInvest, the "US Dollar index has made a "golden cross" today, as its 50-day moving average has crossed above its 200-day moving average as both are rising. The "golden cross" is viewed as a positive by market technicians, as it is thought to signal a significant favorable turning point". For more, go here.


Chart 1: US Dollar index as at September 3rd, 2008 (Source: BespokeInvest)

The strengthened US Dollar would further compound the weakness in the Ringgit (due to political turmoil and sharply higher inflation rate)-- leading up a higher USD/MYR exchange rate. From Chart 2 below, we can see that the USD/MYR has gained 16 handles (or, 1600 points) in just 3 weeks since breaking above its ascending triangle at the 3.28 level on August 8th. The USD/MYR's upcoming resistance levels are at the downtrend line resistance of 3.48 & the horizontal line resistance of 3.52 (see Chart 3 below).


Chart 2: USD/MYR's weekly chart as at September 3rd, 2008 (source: Saxo Bank Datacentre, via Passion-Trading.com)



Chart 3: USD/MYR's monthly chart as at September 3rd, 2008 (source: Saxo Bank Datacentre, via Passion-Trading.com)