The US Dollar declined today as the market is calm for the Christmas holidays, as the Dollar index declined today for testing an important support at 92.58, which represents the neckline of the head and shoulders pattern on the daily chart, and with breaking this level we would see prices targeting levels of 90.
On the other hand, the strong rise in commodity prices, especially gold and oil, helped the Canadian, Australian and New Zealand dollars to rise to their highest level in nearly two months against the US Dollar.
Crude oil prices rose to their highest level in two and a half years yesterday after news of the explosion of a Libyan oil pipeline, but prices returned to stability today after reports of the gradual return of the Fortis pipeline in the North Sea to work.
Gold prices also rose to reach their highest level since the beginning of December at $1286.32 an ounce, in light of the decline of the US dollar, so commodity currencies benefited from that and record highs against the US dollar.
The US dollar slipped against its Canadian counterpart, currently trading below a strong support level at 1.2664, which represents the neckline of a triple top pattern. And with the stability and closing below it, we may see further decline for USDCAD targeting the 1.2420 levels.
Additionally, the New Zealand dollar rose against its US counterpart, hitting its highest level since October 19 at 0.7073 after re-testing the neckline of the inverted head and shoulders pattern on the daily chart. The Australian dollar also did not miss the opportunity and rose to its highest level since October 25 at 0.7772.
