Dollar Index Exhibiting Strong Bullish Signals
This may be my second or third time analyzing the dollar index, so bear with me on this latest go. Looking at the weekly chart, especially in the last year or so, we see there is strong evidence of a reverse head and shoulders, only that the left shoulder is still to be formed. But, the reverse left shoulder aside we still have another strong bullish indicator, the cup and handle forming. Which ever way you look at it there's a tone of technical evidence that the dollar index is fixing to weaken relative to the currencies that comprise it. This doesn't bode well for the proponents of the most recent "trade war" between the U.S., China, and Europe. With U.S. goods becoming more expensive relative to the rest of the world and the anticipation of higher prices from the tariffs imposed from those aforementioned countries; demand will lessen for U.S. goods both internationally and domestically and this has the makings of a inflationary slow-down in the economy, which is the worst type of recession.
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