So far, 2017 has been a tough year for us all and that’s particularly true for the U.S. dollar. Since January, the currency has seen a consistent downgrade after the “Trump Bump” hype started to die down. The economy is remaining rather lackluster at this time and traders are starting to wonder what the future holds.
NOT EVEN TRUMP CAN SAVE THE DOLLAR
For most of 2015 and 2016 the U.S. Dollar Index traded between 93 support and 100 resistance. Once Donald Trump entered the picture, the Index experienced a short-lived breakout. However now, it’s falling back to its old level at 93 and, in some cases, even falling below that.
Now, traders are keeping a close eye on the index. It’s at a crucial point. If it can bounce off 93 and continue to climb, then it might set up another strong breakout. However, many are thinking things will get worse before they get better.
THE DOLLAR’S FATE INTERTWINED WITH THE EURO?
Are the dollar and the euro related? It certainly seems that way. As the U.S. currency continues to decline, the euro is experiencing a nice boost right now. For the first time in over two years, the euro got out of its trading range for the better. Meanwhile, things in the U.S. continue to get worse. So what does the future hold?
DON’T FREAK OUT ABOUT THE DOLLAR JUST YET
For those reading this and starting to worry, just hold on. It’s not the end of times and the U.S. economy is firmly afloat. At least, for now. At the moment, traders are anxiously waiting to see if the Index will regain its 93 resistance level. Traders are also keeping a close on the euro. It’s a waiting game for now so sit back, relax and keep an eye on the numbers like the rest of us. Don’t go selling your soul just yet.