What is in Store for the USD in the Long Term?

It is too early to say what is in store for the USD in the long term. However, looking at the weekly EUR/USD chart, it is not looking too good for the USD. Still, there is the possibility of the price testing the previous low once again in the next few weeks. Paying attention to the economic fundamentals will help. US President Obama & his financial team are perhaps the most concerned people on earth about the strength of the USD. Measures applied with surgical precision (in general) have & are still being taken by them but will it be enough? Obviously, or at least as it set out to be - the US economy would perhaps have gone down in flames without government help.

Banks & investment banks close here & there, big companies going bankrupt & laying off millions of workers, & etc. Will the US economy re-strengthen enough to help the dollar? Will the European economy be slower to recover resulting in a weaker 2009 EUR? What we are seeing now is a weak EUR letting off some steam against a flailing US dollar. Will the price continue to spare the USD some slack or will it leave the USD in the dust again once EUR regains strength? Anyway, the long term EUR/USD price will display some interesting & surprising moves this year for us.



Disclaimer: Trading in the FOREX market & other forms of investments involves risk. This information should not AT ALL be viewed as investment recommendations. The charts & information provided here are not meant for investment purposes & only serve as technical examples.