The recent decline in the U. S. Dollar has people wondering where it might stop; its chart suggests right here is as good a spot as any.
Increasingly, the talk surrounding financial markets lately has centered around the U. S. Dollar (USD). Specifically, the focus is on the 5-month decline in the USD. Obviously, as much as any asset, the behavior of the USD has an impact, directly or indirectly, on many other assets within the financial markets. Thus, with the USD falling as it has recently, it has received much of the blame (or credit) for the unwanted (or welcomed) consequences on the behavior of other assets.
Therefore, market participants are wondering where is the drop in the USD going to stop?Today’s Chart Of The Day takes a peek at the chart of the U. S. Dollar Index (DXY) to identify potential areas of support. As it turns out, probably the most convincing level in terms of its likelihood in providing support is right where the DXY is currently trading, near 92.50.
This post was published at Zero Hedge on 05/04/2016.