Dollar: Weekly Forecast 30th Dec – 3rd Jan 2020

The dollar reconfirmed the break of an 18-month rising channel after a pullback, a retest and a successful rejection from the bottom of the 18-month falling channel.The dollar has been weakening across all major currencies in the month of November and December this year.This is largely due to the fact that the Fed could not raise rate any further and is going to ease monetary policy in order to reach their 2% inflation target.Fed Chairman Powell has clearly stated that the Fed will only consider raising rate again only if they meet their inflation target.Combined with the current technical structure, the dollar is almost certainly going to fall further.We are expecting the dollar to reach the 11-month demand zone around 95.95 by the end of January 2020, 95 by the end of 1st quarter 2020.

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