Good day forex koalas.
It was August 2010 when we last took a look at the US Dollar and now it is time to do so again.
In the previous review, we noted two potential support and resistance lines for the US Dollar Index, the region of 80 and 84. The US was facing the heat of the media and the US Dollar Index looked prime for a bounce off the resistance.
A quarter later, quantitative easing was anticipated, delivered and old news now. The resistance of 84+ did hold as mention and the US Dollar Index went below 80.
With the Euro Zone budget deficit crisis, the Euro currency started to lose it’s appeal. Risk aversion also surfaced and since then the US Dollar strengthened again. As of now, the US Dollar Index is testing the support now turned resistance line of 80. The Euro Zone is facing tough challenges due to its diversity of economic characteristics.
In Aug 2010, we noted that the US debt as reported by TreasuryDirect.gov as of 26 Aug 10 was a total public debt of $13,376,189,739,693.61. As of 09 Dec 10, the total public debt is at 13,846,494,847,569.86. Yes the numbers speak for themselves, there is an increase in the debt of the US. A number of economists believe that the US is fast approaching or in fact has passed the point of no return, which is eventual default.