Forex Trading | Currency Exchange | Currency Trading | Foreign Exchange Blog » strength http://www.forexbite.com/bites Wed, 20 Apr 2011 04:26:46 +0000 en hourly 1 http://wordpress.org/?v=3.1.1 Why the US Dollar Has Not Crashed? http://www.forexbite.com/bites/why-the-us-dollar-has-not-crashed http://www.forexbite.com/bites/why-the-us-dollar-has-not-crashed#comments Sat, 04 Dec 2010 22:06:47 +0000 http://forexbite.com/bites/?p=31 Why the US Dollar Has Not Crashed? post from Forex Trading Blog

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Considering the budgetary deficit and the trade deficit that US is facing the US dollar should have crashed. This was the projection by many analysts. But, would it?

China, the factory of the world runs huge trade surplus with US. What does China do with all the US dollar that it earns? They are investing in US dollar. When they keep buying US dollar, the US dollar maintains its strength because of demand and supply. A strong dollar makes Chinese products cheaper to US consumers and that is why the US market is flooded with Chinese products. Chinese have invested in technology that has enabled it to produce quality products and US consumers have no complaints.

US and China have developed such a synergy between them in trade that Us needs China to stay alive and China needs US to buy what they produce. If one pulls the rug both would crash. The chances are remote.

US dollar is here to stay. Not to worry.

Why the US Dollar Has Not Crashed? post from Forex Trading Blog

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Gold Technical Outlook http://www.forexbite.com/bites/gold-technical-outlook http://www.forexbite.com/bites/gold-technical-outlook#comments Sat, 04 Dec 2010 21:42:03 +0000 http://forexbite.com/bites/?p=1 Gold Technical Outlook post from Forex Trading Blog

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Gold outlook remains to the upside as we look for it to move higher towards the 1,424.30 level. However, it will have to hold firmly above the 1.388.10 level to achieve that. It has wiped out its Wednesday weakness in today’s trading session supporting our bullish call. On further strength, Gold should target the 1,450.00 level and then the 1,500 level.  To reverse this view, the commodity will have to break below the 1,315.60 level, its Oct 18’10 low and its rising trend line. Zone should declines if seen and turn Gold higher again but if snaps, a run at its psycho level located at the 1,300.00 level is likely. The commodity looks to return to the 1,424.30 level while holding above its MT rising trend line.

Gold Technical Outlook post from Forex Trading Blog

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