Dollar’s Direction?
Image Source: Pixabay
Here are two major cross-rates that seem to be telling different stories about the direction the US dollar is going to be heading. The first is EUR/USD, which to my eyes looks ready to plunge (implying the dollar will be getting stronger).
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The second is the USD/JPY, which looks prone to topping out and falling hard. Now, let me be clear I recognize it is absolutely possible for the USD to be weaker against the Yen and stronger against the Euro at precisely the same time, but generally speaking, if the dollars is weaker (or stronger) it tends to be so against all major currencies.
(Click on image to enlarge)
Of course, we could look at this in a macro sense by way of the dollar index ($DXY) which seems to my eyes to be rather bullishly formed, provided it stays above that dashed line.
(Click on image to enlarge)
If I had to make a call, I’d be inclined to say the US Dollar is going to be stronger. What do you think?
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