The dollar Shows Strength in the midst of Struggling Markets

The markets have been bad with a number of huge entities filing for bankruptcy in the past months as the world has suffered a huge lose due to the coronavirus pandemic, the stock markets have taken another huge hit since the 2008 market crash and the dollar has not performed well recently and caused a decline in the currency valuation.

The past two weeks the dollar currency index has shown some remarkable recovery as the currency has shown buying momentum on its support levels which showed investor confidence on the US dollar as most of the global markets has resumed across the whole world as the lockdown restrictions have eased allowing more businesses to continue with their services.

Recommended Article: Dollar Soars As Number Of Infected Increases

Below we have a technical setup of the dollar index in which we show the previous analysis of the dollar index and the current view on the currency.

Previous Setup

Previously we anticipated a bullish move on the dollar index when the currency approached its support zone which is highlighted by the green rectangle and we expected bullish momentum to build on that zone.

Previous Setup on Dollar Index

Current Setup
These upcoming weeks we expect bullish pressure to continue building on the dollar as the economy of the united states faces recovery, the markets have shown strong bullish signals on the support area and we will be looking forward to trading the dollar on its bullish run.

We believe that this article will help improve your trading results for the upcoming weeks, please apply proper risk management in all your trading.