Greenback hits back!

19/07/2021

After a brief period of mediocre run, US dollar is now gaining strength and is all poised to go up even further. 

The AUD/USD pair fell for the third consecutive week, registering a fresh low of 0.7398. US Federal Reserve Chairman Powell’s decision to maintain a dovish stance and the regional lockdowns in Australia are the primary reasons for this downfall. The dovish stance will help US dollar from its safer equities and safe-haven conditions.

Compared to EUR, the greenback is gaining strength slowly but subtly with EUR/USD staying pressured around 1.1800 for the third consecutive day. Worsening risk appetite is seen as the major responsible factor and experts forecast the next support level to be anywhere between 1.1770 and 1.1685.

Similar is the case with GBP/USD. Pound Sterling started off on the back foot with its price dropping down by 0.5% reaching a level below 1.3800. With the delta variant threat looming in the background, the loss can go up to 0.8% in the coming days. GBP bears are forecasting the next support to be around 1.3740, which happens to be a 14-week old support line. 

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