Weakness of the dollar Signs of a change in the air, or an eyesore

forex technical analysis

The U.S. Dollar trading lower against a basket of major currencies 

 As optimism increased demand for risk assets and by a positive movement toward a coronavirus vaccine and the European Union is passing of a massive stimulus

US dollar index (DXY) dropped to 18-month low trading at $95.11, which is close to its lowest level since January 2019. It has dropped by more than 5% in the past three months.

The US dollar index measures the performance of the dollar against a basket of global currencies

In the past four months, most of those currencies have gained significantly against the dollar. 

The euro is currently trading at its highest level in 18 months while sterling is at its highest level since June. Similarly, the Canadian dollar has spiked to its June highs while the Swedish krona has jumped to its January 2019 highs.

Those currencies have jumped because of the improved sentiment in their countries. For example

 Euro has rallied because of improved economic data from the eurozone and the falling number of coronavirus infections. The funding deal passed yesterday has provided more momentum in the eurozone.

The British pound, on the other hand, has rallied as investors play down the immediate risks of a no-deal Brexit. Instead, they have focused on encouraging data from the UK, the support from the Bank of England, and the falling number of new infections.

US recovery slows as considers another round of fiscal stimulus. In a statement yesterday, Mitch McConnel, the senior Republican said that he supported a new stimulus package.

now lets test some currencies :

EUR USD TECHNICAL ANALYSIS
support 1.1440
resistance 1.1620-1.1670
target 1.1860-1.1930

  

EUR USD

AUD USD TECHNICAL ANALYSIS
support 0.69100
resistance 0.7160
target 0.7280-0.7340

AUD USD 

GBP  USD TECHNICAL ANALYSIS
support 1.2530
resistance 1.2760
target 1.31-1.34

GBP USD

NZD  USD TECHNICAL ANALYSIS
support 0.6540
resistance 0.6720
target 0.6970- 0.7040

NZD USD

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