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Are Investors Losing Faith In The U.S. Dollar?

ByChris Kimble
Published 07/29/2020, 02:50 PM
Updated 07/09/2023, 06:31 AM

The US dollar is the king of the currency markets. But recent trading patterns may be sending a warning sign to U.S. dollar bulls. Today we look at a “weekly” chart of the USD:

As you can see, King dollar has made a series of higher highs while maintaining its up-trend line at (1) for the past 9 years.

Over the past three years, however, the greenback may have created a bearish “double top” pattern. Since the second peak in 2020, the USD has fallen sharply and is attempting to break its 9-year trend support line at (2).

If King dollar doesn’t reverse higher soon, it may be an indication that investors are losing faith in the currency.

The decline has sent effected dollar-sensitive assets, notably sending precious metals prices higher. Stay tuned.

Latest comments

If we keep on printing $Trillion greenbacks, what do you expect ?
Why do we have to put faith on a war maker nation that's been taking more and more since WW II ... now Pentagon is aiming to go for a new kind of war  with China ... encouraging it's 5 eyes buddies to stir up more feud ...  US Saudi and Israel , they commit as many crimes as what ****did in the past.
Loosing faith? I sold even the last few dollars that I had on hands after FOMC
So where is your safe haven play then? Gold is a risk asset. So are stocks. Bonds aren't paying much, if anything. No-deal Brexit hurts the GBP and the EUR.
A risk asset? It's real currency because it has value.
are you ok?
If King dollar doesn’t reverse higher soon, it may be an indication that investors are losing faith in the currency
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