The US dollar has been strengthening over the past few days, causing many forex traders to ask: will it last?
Those looking to trade US Dollar weakness against the Euro may wish to wait a bit, as EURUSD is approaching strong resistance near the 1.4000 level on the daily and weekly chart. The chart below, courtesy of forex trader Dave T, illustrates.
Fundamentally, a key event to look for will be the FOMC announcement today. Positive news could fuel greater dollar strength in the short-term. Ultimately, though, I think both the Eurozone and the US have profound structural problems with their economies, and I'm not sure which one has the currency that is more plagued. My bias is that the US dollar is more plagued, although admittedly that could be due largely to the fact that I live in the United States, and thus see the troubles more directly. Ultimately, I'll look to play EURUSD on a technical basis.
Click here to discuss this opportunity with forex trader Dave T, who created the charts above and is looking to potentially trade a pullback in EURUSD.
Disclosure: No position.