The US dollar with a mid term depreciation probability

10.12.2018 / 10:49

Rating:

Numerous technical indications create a likelihood of depreciation of USD against EUR, or against the Bulgarian lev.

We see a false breakthrough above 1,7307, where 200SMA on weekly chart withstand. The price makes 3 lower bottoms and highs on a weekly chart , which is a negative formation and creates a probability of a USDBGN decrease.

On a daily chart, the price is trying to break below 50SMA, which if confirmed and the bar closed strongly below the moving average could result in the recouping of long USD positions and a new drop in the pair.

The EUR fundamentals now has an idea better than that of the USD, due to Meng Wanzhou's scandalous arrest and the potential for exacerbating US-China relations. The fall and the uncertainty of the stock markets also supports some appreciation of the EUR against the US dollar.

The next price that traders will follow is 1.69 as a likely next short-range target.

Trader Nikolay Georgiev

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The US dollar with a mid term depreciation probability

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