Greenback Plunges on Goldman – Breakout Update

5

Goldman Sachs sent the dollar down by assessing that the Federal Reserve will need a dollar printing scheme of another 1 trillion dollars. Yes, one trillion. Quick update on these news and on currency reactions. Quite a few breakouts were seen. Some enjoy this move more than others.

Given the state of the economy, Goldman Sachs sees another dollar printing scheme – one trillion:

“We don’t expect this at the Sept. 21 meeting, but in November or December there’s certainly a possibility that it will be announced,” Jan Hatzius, chief economist at the bank, said Tuesday. He added the Fed is likely to buy U.S. Treasurys worth around $1.0 trillion to kick-start the economy.

This comes as the economy is weak and more stimulus is necessary.

Reactions:

  • EUR/USD broke above 1.2930 and bounced back at the barrier of 1.30.
  • GBP/USD broke above 1.5470 and bounced at 1.5520.
  • USD/JPY fell below 83 – another fresh 15 year low.
  • USD/CHF settled well below parity, currently at 0.9956.
  • USD/CAD settled under 1.280 and bounced at 1.02.
  • AUD/USD broke above 0.9366 and above the 2009 high of 0.9405. It now trades at 0.9420 – highest level in two years.
  • NZD/USD broke above 0.7350 and aims for the next resistance line at 0.7440.

The Aussie is definitely the big winner of this event. The Pound’s move is the most limited one.

Like this story? Vote for it on Forex Factory!

What do you think? Will these breakouts hold? Will the Federal Reserve indeed print one more trillion dollars? Or is this just a one-time event?

Want to see what other traders are doing in real accounts? Check out Currensee. It’s free..

Get the 5 most predictable currency pairs

About Author

Yohay Elam – Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I’ve accumulated. After taking a short course about forex. Like many forex traders, I’ve earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I’ve worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts.