Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious OutperformanceFind Stocks Now

Can Anything Slow U.S. Dollar's Strength?

Published 09/13/2022, 02:42 PM
Updated 07/09/2023, 06:31 AM

The U.S. dollar is strengthening alongside rising interest rates. In fact, both are rocketing higher as inflation takes root and the European economy and the euro weakens.

Today we look for clues via the long-term weekly chart of the U.S. dollar Index.

DXY Long-Term Chart

As you can see, King Dollar has been so hot that it has rallied over 20% in 70 weeks. This puts the U.S.-backed currency in an overbought zone last seen when prior highs took root.

We can also see that the U.S. dollar is testing its prior uptrend line that has been strong resistance since 2009.

Will this overbought resistance line slow the U.S. dollar down? And will that also mark a high in interest rates? Americans sure hope so. If not, more trouble ahead.

Stay tuned.

Latest comments

Great stuff Chris! Analysis without opinion
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.