The U.S. Dollar continues its slide lower and this should of absolutely no surprise to any forex or U.S. Dollar Index trader. The charts have been mapping this route south clearly as any deviation from the downtrend has been met with selling pressure.
Traders continue to buy pullbacks to support in the EUR/USD. Recently the 1.4150 level provided just that opportunity.
It's the U.S. Dollar weakness that really helped propel prices up through the 1.4300 level. The U.S. Dollar Index found buyers at the 77.50 psychological number as prices are currently trading at 77.60. The 1.4300 level was broken for the first time ever as this weekend's G7 meeting draws closer. It is unlikely that the G7 meeting will do much to change the current direction of the U.S. Dollar as the main point of discussion will be the yen and yuan thus effecting mainly the cross rates.
The USD/CHF, moving lower with the dollar, sold off this morning from downtrend line resistance from the falling wedge pattern.
For a look at the crude oil market, the gold market and how they're effeecting the dollar, visit my Money Blogs here
Raghee Horner is a private forex, futures, and stock trader based in South Florida. She is the author of two best-selling forex trading books and a sought after speaker. All charts we used with permission from Autochartist and EZ2Trade Software. For a 21-day trial of Autochartist chart pattern recognition and scanning software, visit www.autochartist.com.
