From Monday's Tech Talk

Currencies

The U.S. Dollar unsuccessfully tested resistance at 81.47 and is showing early technical signs of rolling over. Last week it slipped 0.21. MACD is short term overbought and moved lower on Friday. RSI has declined from above the 70% level. Stochastics fell below the 80% level late last week. Current intermediate downside risk is to the top of its previous trading range at 78.45 and to its 200 day moving average at 78.10.

Chart courtesy of StockCharts.com www.stockcharts.com

Conversely, the Euro added 0.16 last week. MACD is recovering from a short term oversold level. RSI already is recovering from below 30%. Stochastics moved above the 20% level on Friday.

Chart courtesy of StockCharts.com www.stockcharts.com

The U.S. Dollar has a history of peaking at the beginning of March and trending lower from March to December. Conversely, the Euro has a history of bottoming near the end of February and moving higher until the end of May.

20 year charts courtesy of www.EquityClock.com