We’ve seen the US Dollar lose 10% of its value since March, 4% of that in July alone. However, it now looks like the major US pairs have reached significant resistance and support levels and seem to be in ranging territory for the time being. The question us traders are now having to answer is whether the USD is ranging before the next leg down, or will there be a fundamental shift back to dollar demand? Is the USD still regarded as a safe-haven in times of uncertainty? One of the criteria we must consider in making this assessment is looking at the way other countries have handled the coronavirus pandemic compared to the US? So, for now it’s all about the USD fightback. As a technical trader I’m dealing only with numbers and price and last week is the first time the USD has strengthened in the past 7 weeks. Also worth noting is that the inverse relationship with the USD and gold didn’t follow the traditional rules as we saw gold break above the $2000 level. Should the USD sell-off continue, there’s no stopping the gold rally and buyers will look for further gains.
FXtrademark: Is The US Dollar Sell-Off Taking A Breather Or Reversing?
