Forex Trading: Watching The US Dollar

 

Forex Trading & The US Dollar: A Price Pivot Point

usdollarThe majority of forex pairs consist of the US DOLLAR as one of their components.

Even though the US Dollar strengthened considerably two years ago, it’s important to realize that it has basically been in a sideways market for the last year now.

Like all sideways markets, this has favored market makers mostly who, buy the dips and sell the rallies.

By tracking the strength of this market with the 45° support angle (and other course techniques), we’ve been given some signals of weakness that need to be watched most closely.

Should prices close below 94.80 on the Weekly, we will have good confirmation that a downtrend will be underway that will likely last months or even a year plus. – George