The US dollar fell sharply on Thursday as US 10-year bond yields dropped from a 9-month high of 2.504% to 2.425%, while commodity currencies boosted gains against the US dollar in light of gains of metal and oil prices.
The dollar index managed to exceed the important support level at 92.58, its lowest level over the last five weeks, which represents the neckline of the head and shoulders pattern on the daily chart, and with the closing and stability below it, we are expecting to see it targeting the next support level at 90.97 and then the target of the pattern at Level 90. Over the course of 2017 the dollar index fell more than 9%, the biggest decline since 2003.
On the other hand, the euro strengthened and strengthened against the US dollar to reach its highest level over the last four weeks at 1.1945 levels, so far, the euro has risen more than 13% in 2017 and on its way to the best performance since 2003.
Commodity currencies continued to rise, following the two-and-a-half-year rise in oil prices, and copper prices rose to a four-year high. The Australian dollar soared this week by more than 1% to reach 0.7808, its highest level in more than two months. The Canadian dollar continued to rise, with USDCAD surpassing the neckline of the triple-top pattern and it is expected to target 1.24 levels.
