Emerging market currencies are getting crushed even as the rally in U.S. dollar continues to firm up.
Declining for the fifth time in six days, the MSCI Emerging Markets Currency Index plunged to its lowest level in more than a year. The rand, lira, Argentine peso among other currencies extend declines amidst their respective domestic economic chaos - including South Africa’s land-reform bill, Turkey’s high inflation concerns and Argentina's fiscal uncertainties .
The U.S. dollar, on the other hand, rose for the fourth day, in a rising interest rate environment and following U.S. President Donald Trump’s threats to impose tariffs on an additional $200 billion on imported Chinese goods by Thursday.
The Moving Average Convergence Divergence (MACD) for EEM turned positive on April 26, 2024. Looking at past instances where EEM's MACD turned positive, the stock continued to rise in of 44 cases over the following month. The odds of a continued upward trend are .
The Momentum Indicator moved above the 0 level on April 26, 2024. You may want to consider a long position or call options on EEM as a result. In of 93 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
EEM moved above its 50-day moving average on April 25, 2024 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for EEM crossed bullishly above the 50-day moving average on May 02, 2024. This indicates that the trend has shifted higher and could be considered a buy signal. In of 17 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where EEM advanced for three days, in of 321 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 255 cases where EEM Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The RSI Oscillator demonstrated that the stock has entered the overbought zone. This may point to a price pull-back soon.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 5 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where EEM declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
EEM broke above its upper Bollinger Band on May 02, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Category DiversifiedEmergingMkts