The dollar had one of the biggest falls in more than a decade but not with surprise.
It had one of the biggest surges just the week before and therefore the magnitude of the pullback is just understandable.
The dollar was in high demand due to large liquidation of gold for cash caused by plunging stock prices.
Last week, the stock market rebounded and recovered strongly as the Fed relaunched QE in an unlimited volume, thus calming the market and improve confidence.
Gold rebounded as well and naturally demand for the dollar dropped as a result, falling from a peak of 103 to 98.
This week, the dollar is most likely to keep supported and range for awhile within the crucial demand zone around 98.
Should the price rebounded, the first target is seen at 99.6, follow by 101.
Otherwise, if the price breaks below the current demand zone, the next target will be 97.6 and finally 96.
It had one of the biggest surges just the week before and therefore the magnitude of the pullback is just understandable.
The dollar was in high demand due to large liquidation of gold for cash caused by plunging stock prices.
Last week, the stock market rebounded and recovered strongly as the Fed relaunched QE in an unlimited volume, thus calming the market and improve confidence.
Gold rebounded as well and naturally demand for the dollar dropped as a result, falling from a peak of 103 to 98.
This week, the dollar is most likely to keep supported and range for awhile within the crucial demand zone around 98.
Should the price rebounded, the first target is seen at 99.6, follow by 101.
Otherwise, if the price breaks below the current demand zone, the next target will be 97.6 and finally 96.
