Historic US Dollar Signal’s Affects On Gold And The S&P 500 – Investing.com

SectorFinancial Markets
CountryMiddle east

There are 185 different currencies on planet earth, and the is the most powerful of all currencies—the world’s reserve currency.Historic signalOn Mar. 26, the US dollar closed above its 200-day simple moving average (SMA), snapping one of its longest streaks below the 200-day SMA. This could be considered an important milestone. However, on Monday (Apr.

5), the US dollar closed back below its 200-day SMA.USD 200What does this seesaw across the 200-day SMA mean for the dollar? Does it affect other assets, like gold and stocks, and how?There are many opinions on this topic. What you’ll read here are simply the facts, and the facts reveal one (small sample) common denominator and one interesting and consistent ripple effect.US dollar performanceThe chart below plots the US dollar against the percentage difference between the US dollar and its 200-day simple moving average (SMA). The lower graph only shows positive values to filter out some noise. USD Signal DatesOn Mar. 25, 2021, the USD closed above the 200-day SMA for the first time in 209 days. Since 1970, the US dollar traded below its 200-day SMA for >200 days 9 other times.Green bars highlight the last 200 days of each >200 day ...read more...