U.S. Dollar Peaking as Momentum Indicator Reaches Historic High
Chris Kimble | May 04, 2024 05:18
The U.S. Dollar is a key variable in all aspects of the marketplace. The strength of the dollar factors into the price we pay for food, gas, and everyday groceries.
It also affects the equity and bond markets as investors factor in the risks of a dollar that is too weak or too strong versus the current economic climate.
So today we look at a chart of the U.S. Dollar and highlight why active investors should be watching the greenback right now.
As you can see, the US Dollar traded into its 50% Fibonacci level again as its momentum is pulling back from historic highs.
In recent years, when relative momentum has traded this high, marking a top for the US Dollar.
Also, the dollar has formed a sideways consolidation, and should it break down at (1), it would send a few bearish messages to the US Dollar… and perhaps a bullish one to precious metals. Stay tuned.
Get The App
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.