Has The Dollar Been Trumped???
Is The New President Already Affecting The Dollar?
It has only been a few days since Donald Trump has officially started his new post as the U.S. President and we have begun to see some weakness in the US Dollar but is this temporary. We will take a closer look at the charts to find out.
US Dollar Weekly Chart
From what we can see on the weekly chart price has been in a strong uptrend since mid 2014.
From the start of 2015 up until the end of 2016, price was in consolidation and moved sideways. The $100 figure was what kept price from advancing back then, which it finally did in the end.
What does this information tell me? Well because price was restrained in consolidation for so long, we can expect a possible big move to follow. This is not guaranteed to happen and price could just return into the consolidation area and remain there for some time.
The weekly chart shows the support line which was former resistance holding price up for now along with the $100 figure.
US Dollar Daily Chart
There is another support shown on the daily chart which is holding price up.
The arrow shows which direction we can expect price to move if that area is successful at supporting price.
If the Dollar becomes weak then we may see price decline to the 200 moving average (black line) but for now we don’t need to worry about that.
To confirm a continuation of the uptrend we will need to see January 2017 highs around $104 being broken then we can have confidence that the Dollar will continue to ascend. For now keep this chart on your watchlist and observe what happens next.
Kola is a Trader in London, United Kingdom. Read Kola's blog from their page.about.me
To find out more how I analyse my charts in depth and profit from these analysis then visit my about.me link above and contact me through there.