Over the last couple of days the Dollar has been tip toeing on a thin line as BRIC
countries have been questioning its future as a reserve currency. While
certain members are extremely disappointed with the current value of
the Dollar, partly caused due the U.S’s enormous deficit, others are
still defending the greenback, mentioning that its status will not be
affected. One must note that many metals are still traded in U.S
Dollars; therefore oil exporting countries are being affected by the
Dollar’s devaluation. While there have been a lot of discussions
regarding the U.S Dollar, actions are yet to be take. In most cases, diversifying the world’s currency is easier said than done.
Consequentially the Dollar index has been treading water over the last
couple of days, after hitting resistance of 81.30 points. To date the
price pattern has formed a bullish triangle in a down trend. While a
breakout is often seen to the upside in this type of pattern,
additional pressure could be felt on the Greenback, leading it to its
recent lows.
On individual pairs the EUR/USD managed to find support early morning
regaining Monday’s losses, while the GBP/USD continues to remain around
recent highs. The U.K is expected to release its ILO unemployment rate
shortly, showing that the economy’s job loss rate has increased to a
whopping 7.3%. In addition Initial claims will show an increase and is
expected to come out at 60.0k. For further charts see dodjits.com chart
analysis page.
Read the full article at dodjit.com
countries have been questioning its future as a reserve currency. While
certain members are extremely disappointed with the current value of
the Dollar, partly caused due the U.S’s enormous deficit, others are
still defending the greenback, mentioning that its status will not be
affected. One must note that many metals are still traded in U.S
Dollars; therefore oil exporting countries are being affected by the
Dollar’s devaluation. While there have been a lot of discussions
regarding the U.S Dollar, actions are yet to be take. In most cases, diversifying the world’s currency is easier said than done.
Consequentially the Dollar index has been treading water over the last
couple of days, after hitting resistance of 81.30 points. To date the
price pattern has formed a bullish triangle in a down trend. While a
breakout is often seen to the upside in this type of pattern,
additional pressure could be felt on the Greenback, leading it to its
recent lows.
On individual pairs the EUR/USD managed to find support early morning
regaining Monday’s losses, while the GBP/USD continues to remain around
recent highs. The U.K is expected to release its ILO unemployment rate
shortly, showing that the economy’s job loss rate has increased to a
whopping 7.3%. In addition Initial claims will show an increase and is
expected to come out at 60.0k. For further charts see dodjits.com chart
analysis page.
Read the full article at dodjit.com
