The United States’ dollar has recently broken through a key level of resistance. For the month of February, the greenback index gained 0.73 percent and is looking like it will breakthrough a critical resistance level going into the month of March. Late in February, the dollar dipped slightly below the Fibonacci support level at 38.2 percent, but since then, it has shown signs that it is ready to take off again. It later rose up to almost the same height as its 100 day moving average at 9844. This motion gives traders a lot of hope for a soaring dollar during the month of March.
The new levels to watch out for are the 50 percent Fibonacci number, right around 9850. The new support level for the dollar index is at 9800. Prior to this, the support level stood at 9775. These new numbers are optimistic, but the dollar has shown signs that it might even break through a new resistance level. This marked the largest single day gain since February 14th, when it rose 0.72 percent.
The current surge in value has broken the dollar out of its channel and can be an indication of a new upward trend. With Fibonacci numbers indicating a jump in price as being imminent, investing in the U.S. dollar now is a good idea. If the dollar does breach the 9850 mark, there is every indication that it will keep going up. And with the debt troubles going on in Europe, the dollar stands as one of the most stable trades in the world. This will only increase the world’s attraction to the greenback and will help prices increase even more.
In comparison to the Euro, the dollar has performed especially well over the last few days. On the 29th of February, the Euro stood at almost 1.35, but since then it has dropped considerably down to 1.32. With Greece now stating that they are officially in the fifth year of their recession, things do not look like they will improve for Europe in the near future. Joblessness levels in Greece hover right below 20 percent, making this a dire situation for the European Union. Greece is starting to launch a privatization campaign in hopes to spare their government a good chunk of their debt. Still, they need to raise about 50 billion Euros by 2015 in order to match the EU’s goals that have been set forward for fixing the Greek debt problem.
The dollar has seen ups and downs over the last year, but if these recent events are any indication of future movement, it seems that the dollar is getting poised for a long term push upward, especially in regards to selling the Euro short.