Home Economy Gold cross for dollar and downside potential for euro

Gold cross for dollar and downside potential for euro

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The US markets closed Thursday with a slight rise of 0.2% in the S&P500. Asian markets showed mixed dynamics on Friday morning. The currency market also has a mixed performance, which, however, has several warning signs.

A so-called golden cross occurs in the DXY Dollar index, where the 50-day simple moving average tops the 200-day one. This is an influential technical signal that often triggers an independent market reaction. In addition, we see further confirmation of the bullish sentiment for the USD, as the price is above the mentioned moving averages, unlike the case with a similar situation in May.

The Dollar index is at 93, in the area of this year’s highs. A further rise would be a confirmation of an exit from the prolonged consolidation, which could trigger an impressive reassessment of the markets, forming a new positional trend after the side range.

A strengthening Dollar is usually accompanied by increasing pressure…

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