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US dollar to fall -40% against euro, forex analyst predicts


VishalM

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Expect US dollar to plunge 40% against euro, forex analyst predicts

 

The US dollar could severely depreciate against the euro by 2024, says forex analyst Ulf Lindahl, chief executive officer of A.G. Bisset Associates. He says the greenback is entering the cycle of losses.Since the 1970s, the US currency has been repeating a 15-year cycle of losses and gains, and the greenback has now entered the phase of declines, Lindahl said.

 

“When investors learn about the 15-year cycle, they are initially skeptical and doubt it exists,” the analyst said, as quoted by Bloomberg. If non-US investors don’t hedge against the dollar, they could face the “riskiest investment climate in 45 years,” Lindahl added.The analyst predicts that the dollar will fall to $2 per euro and 75 yen per dollar by 2024, corresponding to 41 percent and 33 percent losses, respectively. Lindahl notes that the cycle of losses and gains is a usual pattern for economy, investors don’t see it when it concerns the dollar.

 

From the economic standpoint, Lindahl cites the following factors for the greenback’s decline: a likely slowdown in US economic growth that will result in a market slowdown, political turmoil, and the dollar’s overvaluation on a purchasing-power-parity basis against almost all major currencies.The dollar has strengthened this year against the euro, trading at $1.1542 on Wednesday compared to $1.25 at the beginning of the year. The US currency has slightly weakened against the yen in the last 12 months.

 


 

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  • 4 weeks later...

This week, Gold price went up by +$32 from BREXIT fears when 7 ministers resigned from UK Parliament or Theresa May's UK government.

Some 1,000,000,000 people worldwide who buy Gold and they will never sell gold unless they need the money, do not change the Gold price

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Traders must try to give emphasize on currency value movement if they want to take timely decisions. And when a forex trader tries to give concentration on market behaviors he can at least think of rational decisions. However, with the basic progression of global economy and international relationship USD value has experienced sudden changes in its values and if you are major currency pair traders then you must be careful here.

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Head and Shoulders Tops and best forex trading signals

 

Head and Shoulders Tops and the best forex trading signals

Appearance Three-peak formation with center peak taller than the others.

Shape

After an upward price trend, the formation appears as three

bumps, the center one is the tallest, resembling a bust.

Symmetry

The two shoulders appear at about the same price level.

Distance from the shoulders to the head is approximately the

same. There can be wide variation in the formation’s

appearance, but symmetry is usually a good clue to the

veracity of the formation.

Volume

Highest on the left shoulder, followed by the head. The right

shoulder shows the lowest volume of the three peaks.

Neckline

Connects the lows of the two troughs between the three peaks. The line can slope up or down. Often used as a triggerpoint (to buy or sell) once price pierces the line.

Downward breakout

Once price pierces the neckline, it may pull back briefly, then continue moving down.

forex signals take profit and Measure rule

Compute the formation height by subtracting the value of the

neckline from the highest high reached in the head, measured

vertically. Subtract the result from the breakout price where prices

pierce the up-sloping neckline, or, if the neckline slopes

downward, closes below the right shoulder low. The result is the

minimum target price to which prices descend. Alternatively,

compute the formation height from the highest high to the daily

low price in the higher of the two troughs. Subtract the result

from the daily high price in the higher of the two troughs to get

the target price. This method boosts the success rate and does not

rely on the neckline or breakout point (useful for steep necklines).

stop loss for forex trading signals

For short sales, place a stop just above the lower of the two

troughs or just above the neckline, whichever is higher.

Watch for pullback

Initiate a short sale or add to your position during a pullback. Wait for prices to begin falling again before placing the trade as prices

sometimes pull back and continue moving up

Tall or narrow patterns perform better than short or wide ones. Avoid

patterns that are both short and wide

 

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