As you probably know, the US Dollar has been one of the key indicators of the global economic health for many decades. All of us, from ordinary people to sophisticated traders and investors, monitor the USD exchange rate every week if not every day.
Apparently, a weaker dollar affects businesses and economies worldwide. When the Euro currency declines, the USD futures gains value. The US Dollar and the common European currency are the 2 major reserve currencies for the rest of the world.
Meanwhile, Wall Street ended today’s trading session in the green zone. The major reasons for the gain were several positive reports from US companies As a result, the indices finished today with the following results:
- S&P 500 + 0.16%,
- Dow Jones + 0.05%,
- NASDAQ + 0.57%.
Based on the technical analysis of the DJIA H8 chart, we can see that Dow Jones tried to break above 15,735, which matches the first Fibo retracement level. If the price does succeed in overcoming the resistance, the price may go further up to 15,840.
Meanwhile, the US Dollar weakened against most other major currencies since investors are concerned about the Fed’s decision to taper QE even further amid the fact that the debt ceiling issue is still unresolved, which threatens to result in a US technical default.
The chart below, courtesy of Masterforex-V Academy, reflects the current state of affairs in the market of EURUSD:
