The U.S. dollar fell below its absolute record low level against the European currency today. If the day closes above $1.5 per euro, it will be a signal for a definite return of dollar to its bearish trend of the 2007.
EUR/USD broke through the major 1.5000 resistance at the beginning of the Asian trading session today, but then the currency pair retraced back below the 1.5000 mark and remained below it for several hours. Near the end of the Asian session EUR/USD broke through that resistance again and soared high up to 1.5087 its new historical record.
Dollar started to lose its positions against euro two weeks ago, when it became clear that the Fed will continue cutting the interest rates to uphold the economic growth in U.S.
Today many analysts already disbelieve in the numerous forecasts that stated that the U.S. dollar will be gaining against the euro in 2008. The more probable outcome is now seen in a new long-term rally for EUR/USD which can lead to a significant (more than 5%) yearly gain for the euro over the dollar in 2008.
As of 9:30 GMT dollar is trading at 1.5047 rate against the euro.
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