US Dollar May Gain as Stocks Position to Turn Lower

Published September 10th, 2009 - 10:12 GMT
Al Bawaba
Al Bawaba

The US Dollar may gain in the days ahead as equity markets reverse lower, boosting demand for the safety-linked currency. The MSCI World Stock Index is showing a Rising Wedge bearish reversal formation, with confirmation offered by negative divergence on the RSI oscillator. The US Dollar Index is now -91.3% inversely correlated with the MSCI metric.





Created Using Bloomberg - Prepared by Ilya Spivak