Dollar May Climb Further but Not for Long
This month will be critical for the dollar as it will show whether the price will stay supported within the rising channel or confirm the break.
What's likely the outcome is the dollar will start to really weaken, both fundamentally and technically.
103 probably marked the peak for the dollar and the price has already wiped out all gains in March if we exclude the portion from below the rising channel.
The chart has shown that the dollar is losing its value and the most recent break-below of the bottom of the rising channel determined the case.
The Fed during its last FOMC conference said that interest rate will remain low throughout 2022, which means that demand for dollar will not be expected from a rate hike for a good period of time.
The Fed's balance sheet has expanded to a really horrendous figure during this pandemic which I don't even want to talk about it more.
To sum it up, the dollar may still rise a little further as demand for safe-haven currency such as dollar will rise as COVID cases rose last week.
But it won't be long and the dollar will start to lose its value and should the month closed below the channel, that shall be the beginning to the fall of the dollar.
What's likely the outcome is the dollar will start to really weaken, both fundamentally and technically.
103 probably marked the peak for the dollar and the price has already wiped out all gains in March if we exclude the portion from below the rising channel.
The chart has shown that the dollar is losing its value and the most recent break-below of the bottom of the rising channel determined the case.
The Fed during its last FOMC conference said that interest rate will remain low throughout 2022, which means that demand for dollar will not be expected from a rate hike for a good period of time.
The Fed's balance sheet has expanded to a really horrendous figure during this pandemic which I don't even want to talk about it more.
To sum it up, the dollar may still rise a little further as demand for safe-haven currency such as dollar will rise as COVID cases rose last week.
But it won't be long and the dollar will start to lose its value and should the month closed below the channel, that shall be the beginning to the fall of the dollar.
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.