We are at a level of supply as indicated by the 200 day MA, plus upward trending support, plus long term resistance turned support.
Could the level be broken? Possibly. The reasons according to many analysts is that the USD is not considered a safe haven currency. However I wonder if its because the dumping of risky assets in Europe turning the euro into safe haven - is just temporary until the dumping of risky assets in the USA. Remember up until now, the US equities although dropping significantly has not created the level of panic seen in other jurisdictions as indicated by the VIX.
Ultimately, the ECB is likely to ease while the Fed is not likely to go back to square one.
I tend to think there might be consolidation at this level and a sharp move up however a drop below, and I'd be considering closing all my long USD positions.
Could the level be broken? Possibly. The reasons according to many analysts is that the USD is not considered a safe haven currency. However I wonder if its because the dumping of risky assets in Europe turning the euro into safe haven - is just temporary until the dumping of risky assets in the USA. Remember up until now, the US equities although dropping significantly has not created the level of panic seen in other jurisdictions as indicated by the VIX.
Ultimately, the ECB is likely to ease while the Fed is not likely to go back to square one.
I tend to think there might be consolidation at this level and a sharp move up however a drop below, and I'd be considering closing all my long USD positions.