While Oil and Gold set records, the Dollar is consolidating against the Euro

World-Signals Team World-Signals

The dollar remains steady against the Euro this week. But the same cannot be said for oil and the price of gold. The dollar continues to lose against the precious metal, which is setting new records day after day.

And oil is about to reach $100 levels, as Russia has promised after becoming the real OPEC+ leading country.

Since both economies on both sides of the Atlantic are sufficiently vulnerable to contemporary challenges, the dollar and euro will continue to weaken, respectively.

What is seen from technical analysis is that Euro/Dollar will continue in the 1.0770 - 1.0870 consolidation for about a week, after which we expect a break out of these levels.

World-Signals.com recommends a narrow trade at the levels around 1.08 with target exits up to 40 pips from the opening point.

Although a trade outside of this week's range is possible, overall we don't expect the move in one direction or the other to last for long.

However, the collapse of the dollar in other markets such as oil and gold will continue to undermine confidence in the dollar.

The all-time highs in the price of gold are yet another signal to seek new investments and flee fiat money, which could collapse too quickly. The results coming from the banks, as a major buyer of gold, continue to add fuel to the fire, and the US dollar is now in the fire.

Author

World-Signals Team

World-Signals

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