The US economy has been exceedingly fragile in recent months and the addition of involvement in new conflicts in the Middle East has not helped. The United States is playing a very dangerous game with regard to how far thin they are stretching themselves. Many financial analysts have said that the Federal Reserve has done enough to aid US recovery and that the country is back on track where the economy is concerned. This means it is time to bust out your forex charts and take notice of the fact that the USD will be gaining momentum against currencies like the EUR in coming weeks.

The US' continued involvement in Libya however could result in a short-lived gain where the USD is concerned. The Federal Reserve should be backing off where quantitative easing is concerned, however they have been known to act without rhyme or reason. This has lead to many seeing the Federal Reserve as a rather aggressive and sometimes reckless institution, not a good image for the creator of the world's current reserve currency. Using your forex charts will do a lot of good in coming weeks in conjunction with news about the Federal Reserve's next move.

One thing is certain, if the Federal Reserve does indeed back off where the money supply is concerned for the near future than the USD will rise in value in the long term. Do not look for it to be a scalper's paradise but where intraday trading is concerned it could be a gem. Look at your forex charts regularly and make trades that adhere to the Fed's latest decision, failure to do so could result in massive losses. The fact that the Federal Reserve has a positive outlook on the US economy does not mean a whole lot where reality is concerned, if they are wrong there will be massive retracement.