The bearish trend for the US dollar shows no sign of abating, with the daily USD index chart plunging ever lower this morning. The problem for the US currency is that it is being pressured lower both from a technical and fundamental perspective. The FED policy of further quantitative easing is devaluing the currency by proxy, whilst the technical picture remains bleak, as we break below each potential platform of support on the daily chart, with all four moving averages adding additional pressure to the trend lower. The following article explains the background, and you can read my latest USD index forecast on my forex trading site, along with all the major currencies which are now benefiting from the collapse in sentiment towards the US currency.
The dollar has come under deeper attack, hitting a fresh 15-year low against the yen in spite of the possibility of further intervention from the Bank of Japan, while the Australian dollar has neared a 27-year peak and the Swiss franc has hit a record high. As monetary officials and finance ministers prepared for Friday’s International Monetary Fund gathering in Washington, investors continued to push the dollar lower on speculation that there would be little or no intervention in the currency markets ahead of the meeting.
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Investors continue to push dollar lower