Market Snapshot – Dollar Set to Close the Week On the Backfoot

Dollar On The Backfoot

The dollar continues to be on the backfoot as it is set to close the week in a very weak manner with large losses. But what should give some heart to the bulls is the fact that the dollar is beginning to stage a comeback late in the day. It has to be noted that the euro has been rising and during the first half of the day, it looked as though it was only a matter of time before it breaks through the highs of the range and forces its way to 3 year highs but that has not happened so far. This will be looked at as another failure from the euro bulls and this would also mean that the region around 1.2550 would now be viewed with suspicion and is likely to face a lot of selling if and when the euro gets back there again. Still, there are no specific fundamentals or economic data from the US to justify such a deep weakening of the dollar and hence it is quite likely that the dollar might stage a comeback from here as well. This is what the traders need to guard themselves against and not get carried away by the weakness in the dollar and the strength in the euro.

Cryptos Lose Some Ground

The cryptos have moved lower with the BTC prices back in the $10,000 region but this is something that we had mentioned in our forecast. We had said that the prices are likely to face a lot of resistance in the $10,400 region and with the traders and the bulls needing some rest, it is likely that some profit taking and correction takes place in this area and thats what we have been seeing so far in the prices. We continue to believe that there is still some bullishness left in the market and we should see that in the coming week.