Charts: Dollar to Fall; Euro May Enter Bull Market

Thursday, 23 Jul 2009 | 5:23 AM ET

From a technical perspective, the dollar is likely to trade lower for some time, as the euro, along with stock markets, may have entered a bull market, Chris Zwermann, global strategist at Zwermann Financial said Thursday.

"The correlation between the stock markets and the US dollar are still there," Zwermann said. "So if the dollar goes down, the stock markets go up."

"We are on an edge where the dollar really might jump down from here," he said. If the dollar index falls below its current level of 78.80, it could decline to 66, he added.

He sees the similar declines for the dollar against other currencies.

Since the dollar has broken through the $1.41 level, Zwermann sees the next target being $1.46, adding that this is because there are "some signs of a bull market (in the euro)."

The DAX index is likely to jump past its last top of 5,177 toward 5,700-5,800, he told CNBC.


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