Forex Chart Review: The Power of 50 – Carving Out A Large Swath Of Key Pivots?

Tonight, January 14, 2014, I was casually doing my periodic check of forex charts and was absolutely startled to see so many currency pairs pivoting around the 50-day moving average (DMA). I was so captured by this pattern, I decided to post every single chart for the record. I realize that the tests and touches of key technical points are a bit squishy since currencies trade all day and night (my charts are based on Eastern time, New York – I believe most traders do the same). Still, I think this (coincidental?) pattern is worth mention. I honestly do not know what to make of it yet. Perhaps someday soon we will look back and call this a major turning and testing point for many of these currency pairs.

I am posting all the charts with little commentary because I think they speak for themselves. Each chart covers the same period of time. I also left a light watermark for easier differentiation amongst the charts. The red line marks the 50DMA; a blue line shows the 200DMA.


For starters, the dollar index is still lazily bouncing around its 50DMA
For starters, the dollar index is still lazily bouncing around its 50DMA

The Australian dollar experienced the most dramatic pivot around its 50DMA
The Australian dollar experienced the most dramatic pivot around its 50DMA
Strong bounce
Strong bounce
Strong bounce
Strong bounce
The Australian dollar and Japanese yen maintain a peaceful co-existence
The Australian dollar and Japanese yen maintain a peaceful co-existence
50DMA failure
50DMA failure
THe euro remains stubbornly high against the U.S. dollar. The 50DMA has served as a pivot for most of this young year.
THe euro remains stubbornly high against the U.S. dollar. The 50DMA has served as a pivot for most of this young year.
The pound remains my favorite
The pound remains my favorite
Even the placid franc has shown the power of 50 in its currency pairs
Even the placid franc has shown the power of 50 in its currency pairs
Strong bounce
Strong bounce
Very strong bounce
Very strong bounce
For a moment, it looked like a major breakdown for EUR/JPY. Saved by a hair...
For a moment, it looked like a major breakdown for EUR/JPY. Saved by a hair…
USD/JPY continues to defy yen bulls who are fighting the inexorable (yet amazingly slow) rise of USD/JPY
USD/JPY continues to defy yen bulls who are fighting the inexorable (yet amazingly slow) rise of USD/JPY

My favorite bounce
My favorite bounce

Source: FreeStockCharts.com

Be careful out there!

Full disclosure: net short euro, long pound, short Australian dollar (slight), long U.S. dollar, short Japanese yen, short Swiss franc

1 thought on “Forex Chart Review: The Power of 50 – Carving Out A Large Swath Of Key Pivots?”

  1. Pingback: Sterling Digest, 15 January 2014: WTF - FaithMightFX

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