King Dollar; Breaking Key Support Levels

The US Dollar (Currency:USD) has shown strength versus the Euro (Currency:EUR) since 2008, with the “meat” of that strength coming in the last 3 to 4 years. This strength worked as a headwind for precious metals, emerging markets, and at times, the domestic economy.

But that market dynamic is at a crossroads… and may be nearing a turning point.

A currency “shift” here would have short- to intermediate-term consequences for various assets across investors portfolios. So investors need to stay tuned.  This could also usher in some volatility, as traders look to re-align their currency hedges and interests.

As you can see in the chart below, the US Dollar hit dual resistance at the same time that the Euro hit dual support. And currently, the Dollar is attempting to break a key rising support trend line. This comes at the same time that the Euro is attempting to breakout over key downtrend price resistance.

Could these reversal patterns mark a turning point in the global markets for traders?


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Author: Travis Esquivel

Travis Esquivel is an engineer, passionate soccer player and full-time dad. He enjoys writing about innovation and technology from time to time.

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