Market Analysis: Weak Dollar’s Position

<img src="https://images.unsplash.com/photo-1583574928108-53be39420a8d?crop=entropy&amp;cs=tinysrgb&amp;fit=max&amp;fm=jpg&amp;ixid=M3wxMTc3M3wwfDF8c2VhcmNofDEwfHxkb2xsYXJ8ZW58MHx8fHwxNjg5MDY0MDAyfDA&amp;ixlib=rb-4.0.3&amp;q=80&amp;w=2000" alt="Market Analysis: Weak Dollar’s Position" /><p>Bloomberg writes that the big hedge funds have flipped and are now taking a short position on the dollar in the expectation that the Fed is nearing the end of its cycle of raising interest rates.</p><p>It is possible that the weakness of the USD against a basket of other currencies is influenced by the announced intentions of the BRICS countries to issue a currency backed by gold.</p><figure><img src="https://fxopen.com/blog/en/content/images/2023/07/11j1.png" alt="Market Analysis: Weak Dollar’s Position" loading="lazy" width="2000" height="1099" srcset="https://fxopen.com/blog/en/content/images/size/w600/2023/07/11j1.png 600w, https://fxopen.com/blog/en/content/images/size/w1000/2023/07/11j1.png 1000w, https://fxopen.com/blog/en/content/images/size/w1600/2023/07/11j1.png 1600w, https://fxopen.com/blog/en/content/images/size/w2400/2023/07/11j1.png 2400w" sizes="(min-width: 720px) 720px" /></figure><p>Be that as it may, however, the EUR/USD rate has risen by an impressive 1.5% since the low of July 6, reaching a maximum since May 8. At the same time, the EUR/USD chart shows that:</p><p>&#x2192; the price has broken the downward channel upwards (shown in red);</p><p>&#x2192; the bulls are so bold that they are trying to break the double SHS pattern formation.</p><p>On the morning of July 11, a long upper shadow on the candle indicates the possibility of a false breakout of the top of June. However, markets are waiting for news about US inflation (Consumer Price Index data will be released tomorrow at 15:30 GMT+3). It is possible that they may further weaken the dollar, sending the euro even closer to the highs of the year.</p>