Currency forecast: the risk of default undermines confidence in the US dollar
The dispute between Republicans and Democrats about the need to raise the “ceiling” of the national debt undermines confidence in the US dollar. In fact, the whole world becomes hostage to the internal political strife of one, albeit economically powerful, state. Of course, even a technical default will not lead to a one-time rejection of the US dollar as the world’s reserve currency. However, it will be an additional incentive for the whole world to look for an alternative to it. At the moment, the most likely compromise is between Republicans and Democrats. This was reported by RoboForex analyst Andrei Goilov.
Chart of the currency pair EURUSD, D1.
In the EURUSD pair, support was formed at 1.0833 and resistance at 1.1069. The dollar may weaken to the level of 1.1115. At the same time, for the further growth of EUR, the quotations must return to the level of 1.0974. At the time of writing the comment, there was a struggle between “bulls” and “bears” for the level of support.
Chart of currency pair USDCHF, D1.
In the USDCHF currency pair, the resistance level has now moved to 0.8988, and the support has formed at 0.8864. If the price is fixed below 0.8967, the dollar will weaken to the level of 0.8775. Otherwise, it may strengthen to 0.9018.
Chart of currency pair AUDUSD, D1.
In the AUDUSD currency pair, resistance is formed at 0.6803, and support is at 0.6572. It is possible that the US dollar will strengthen to 0.6435. A signal to its weakening can be the anchoring of quotations below the level of 0.6697.
Chart of currency pair USDJPY, D1.
In the currency pair USDJPY, the support level has moved to 134.13, and the resistance has not yet formed. At the moment, the USD is striving to reach record highs since the beginning of this year. For this, it is necessary to stay above the level of 137.54.
Chart of currency pair GBPUSD, D1.
In the currency pair GBPUSD, support was formed at the level of 1.2435, and resistance at 1.2654. When the resistance level is broken, the pound will be able to reach the level of 1.2746.
Chart of currency pair NZDUSD, D1.
A support level of 0.6183 was formed in the NZDUSD currency pair. Resistance is formed at the mark of 0.6381. In the current situation, the US dollar may strengthen to 0.6126.
Chart of currency pair USDCAD, D1.
In the USDCAD currency pair, a support level appeared at 1.3358. Resistance is now at 1.3647. The Canadian dollar weakened against the backdrop of lower oil prices. If the resistance is broken, the USD will strengthen to 1.3805.
Source: Ministry of Finance