Dollar: Weekly Forecast 23rd - 27th March 2020
"Not until the dollar breaks above 100, we will keep a bearish stance" was what I've mentioned in the previous forecast.
Apparently, once it broke 100 psychological level, the price surged all the way to 103.8, deep into a 3-year supply zone.
Although the Fed has cut rate to almost zero, the demand for the dollar was still high amid panic selling of the stock market due to the coronavirus.
Many central banks have also been reducing rates or easing monetary policy and one of the most prominent ones was the ECB which has relaunched and full-scale QE.
A double is currently seen forming within the 3-year supply zone and could cause the dollar to pull back further into the previous rising channel.
Look for support and rebound as the price enters into the demand zone around 101 for a buying opportunity again and aim at the previous high of 103.8, or even higher.
Apparently, once it broke 100 psychological level, the price surged all the way to 103.8, deep into a 3-year supply zone.
Although the Fed has cut rate to almost zero, the demand for the dollar was still high amid panic selling of the stock market due to the coronavirus.
Many central banks have also been reducing rates or easing monetary policy and one of the most prominent ones was the ECB which has relaunched and full-scale QE.
A double is currently seen forming within the 3-year supply zone and could cause the dollar to pull back further into the previous rising channel.
Look for support and rebound as the price enters into the demand zone around 101 for a buying opportunity again and aim at the previous high of 103.8, or even higher.
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