When Fed Powell hinted several weeks ago that rate hikes were on pause, many experts thought that would hurt the dollar. Low interest rates usually go hand in hand with a weaker currency. However, the US dollar hit a fresh 2019 high earlier this week.
Since then, a bit of a pullback has developed and price now sits below the 97.00-level on the chart. With weakness in the Euro and Japanese Yen, and China’s economy slowing down, I think the US dollar is a crowded trade. There is no other place to turn to, so the US dollar is the lesser of all the evils out there.
So is there more room to the upside, lets go to the charts to find out?
Monthly Chart (Curve Timeframe) – Monthly demand is at $101.50 and monthly supply is at $89.00.
Weekly Chart (Trend Timeframe) – the trend is up, but price is back at the weekly supply at $97.50.
Daily Chart (Entry) – no entry at the moment, as price has been range bound since October.
This post is my personal opinion. I’m not a financial advisor, this isn’t financial advise. Do your own research before making investment decisions.