New Hope For The Greenback

The greenback is still at the very low levels, and overall 2017 hasn’t been a successful year for the currency, shrugging off the support from a rate hike and Republican tax reform. Yields’ decline is also a problem, that burdens dollar. USD index is at its multi-week minimums. But, there is hope for recovery in January 2018. That is, the index might hit the important support zone of 91, which will in turn restrain the downside. The decline from 103.82 has a corrective manner. Firm breach should prolong the drop for half a year or even a year to 61.8% retracement at 84.58 and then the correction will end. Stocks, on the other hand, have shown some decent gains. DOW, S&P 500 and NASDAQ have been hitting maximum this year. DOW is still in a long term acceleration phase and 161.8% projection of 10404.09 to 18351.36 from 15450.56 at 28308.59 can be aligned in the coming year.