Dollar_index
10 YEAR FIBONACCI ON DXY U.S. DOLLAR CHART!We are approaching the .5 line on the Fibonacci retracement. This is a DECADE long Fib! In my opinion, if the Crypto markets want to continue moving up, the DXY must break the .5 level! If it double bottoms and starts moving back up, the crypto markets will be put on hold. However, I do believe it will break. There was a DEATH CROSS on the weekly chart mid November. The last time that happened was JANUARY 2003!!! It then proceeded to drop over the next 5 years by over 30%!!! We could be witnessing the collapse of the U.S. Dollar right before our eyes!
🤔Dollar rising and Gold rising (as expected!)😉Our updated Dollar chart. Close to major resistance again.
Funnily, dollar is rising and commodities are rising which is a big discussion I will try to keep it extra short:
no inflation, dollar is doomed...what happens to gold then? it goes UP
high inflation, dollar goes down and therefore people tend to hold money in the form of gold (and btc). Therefore, in times when inflation remains high over a longer period, gold becomes a tool to hedge against inflationary conditions. This pushes gold prices higher in the inflationary period. So Gold up again 🔝
Weird yes? Not really, it's the times we live in, the times are weird more than the prices. An it will be a crazy year.
ps. CIP (inflation) data came out exactly as forecasted, no major news on inflation today. I had prognosed that Gold will rise together with dollar just 3 days ago. ask me privately and I will show you )
ps2. Dollar rising and Gold rising...what happens if dollar drops next?? Take a wild guess guys
DOLLAR - Back for good or temporary? (INFLATION WILL BE KEY🔑)Well guys we will find out soon, on Wednesday.
Last Friday we were all bombarded with headline news for poor jobs (NFP) but we did not neglect to take into account 2 things:
a. unemployment rate dropped (good for dollar) - important
b Average hourly Earnings rose by 0,8% (vs 0,2% forecast) - VERY IMPORTANT!!!
Why was average hourly earnings so important?
Well first let's understand what Average Hourly Earnings is:
It is the change in the price businesses pay for labor. When the Actual is greater than 'Forecast' is good for currency. It means this - INFLATION!
WAGES GROWING = INFLATION
Inflation right now IS GREAT NEWS FOR CENTRAL BANKS!
Why?
Well let's keep it simple: If they owe 70 trillion dollars (for example) and the economy is worth say 10 trillion dollars, they would prefer the economy to be worth 20 trillion dollars because that way the debt becomes a smaller percentage of the wealth. More controlable.
So what happens next??
Well, if last Friday we had inflation (headlines were misleading you all on the poor jobs but we didn't get tricked) then on Wednesday we have the BIG inflation numbers coming out:
CPI and CORE CPI coming out in 2 days :
Change in the price of goods and services purchased by consumers;
Usual Effect 'Actual' greater than 'Forecast' is good for currency;
Consumer prices account for a majority of overall inflation. Inflation is important to currency valuation because rising prices lead the central bank to raise interest rates out of respect for their inflation containment mandate;
Got is guys? Inflation is KEY 🔑
Want some more?
On Wednesday we will also know the Federal Budget Balance (Difference in value between the federal government's income and spending during the previous month).
In other words, have fun struggling with these markets conditions until Wednesday. After that, things will be crystal clear.
DXY Supercycle analysis. Are YOU hedging vs.declining dollar? Dollar rebounded off 89.56ish and rallied hard today.
If it breaks below 89 we will see a plummet to the mid to low 88, I believe.
I think 2018 is a good benchmark for current DXY behavior, and what to look for in the oncoming weeks.
But what's concerning, in regards to the dollar's current trend, is the length/duration of 2018 decline is shorter than current downtrend, before price recovered.
As you can see in the DXY chart provided, length/duration of current dollar downtrend has superseded 2018's by 30 days...And counting.
If you haven't adjusted your portfolio with an inflation hedge by now, here's some compelling evidence that you may want to.
Good luck m8s and may the odds forever be in your favor.
P.S. First post, so constructive criticism is welcome.
Please and thank you.
DXY begins its next dump to lower lows.DXY
~93.50 has been broken on the downside. The two key remaining support levels to watch are 92.75 and 92.50. If these are both taken out, then lower lows below 91.75 are highly probable. If they hold, higher highs above 94.80 are still ahead. This is important for precious metals and miners, as they have been highly correlated on an inverse basis to this point. If the DXY falls, metals rise, and vice-versa.
Ideally, we are setting up for a negatively divergent higher high before DXY begins its next dump to lower lows.
Deflationary assets go up, inflationary assets go down. Its not rocket science, its pure math.
History doesnt repeat exactly in the same way, except with fiat, with fiat always ends in the same way, doesnt matter how powerful the empire is.
You can't print +25% of shares in a year and expect the value going up in an asset with +100 years of history.
When US dollars were based in a scarce asset like gold the math worked, but after 1971, MBS, CDOs, and other financial products, the value was condemned.
The only way to save the dollar is to peg it again to a new real asset based in deflationary supply, fixed distribution and assured scarcity.
It doesnt matter if you like it or not, the best solution is peg the dollar to Bitcoin.
DXY - Our updated BIG CHARTThe most important asset, the world's exchange currency, the United States dollar.
Our previous chart and calculated support has been working perfectly
It is now highly probable that in the next few days we can experience the dolalr rising against other major currencies. Especially against eur, jpy and gbp
Our small chart will follow to make things clearer for you all
ps. Major support levels mean major opportunity for getting on a new trend early. The next few days can start being great trading opportunities, stick around.
The Bullish and Bearish Arguments for DXYThe bullish and bearish trendlines as we currently stand. Bulls will tell you that we have broken the white resistance and are going sideways before a move up, citing higher lows since (90.0). Bears will tell you we are continually being rejected off the blue line, and are still in a strong downtrend on higher time-frames.
PERSONALLY I tend to agree with the bears in this case. Money printing and government stimulus are driving the economy in the current climate and i feel DXY will range for a bit, and then drop below (90.0) with a 4-5% drop. I say this because on high time frames, previous dips have lasted for over 32 days and drop at least 4.2% each time (planning on publishing a chart on this soon so look to my profile for more info)
If you enjoy my amateur insight and have anything to add please like and/or comment. Best of luck
DXY : Is in a demand zone? Hello to all,
DXY came to a demand zone i think.
Thus we could wait a bullish impulse from this zone. The price is moving between 78.6 and 88.6 of fibonacci levels.
May be it want to test the 88.6 level at least but in every situation i'm waiting the bullish move to 92.50.
At the same time i see a bullish divergence on RSI. Price is making lower low bottoms but the oscillator is not.
After any candle close above the 90.80 the bullish move will be faster. We could follow this breakout with lower timeframes next week.
Have a good weekend all. If you find this analysis useful, please support this idea with LIKE and writing a COMMENT.
⭐⭐⭐⭐⭐The MOST IMPORTANT CHART of the year ⭐⭐⭐⭐⭐1. Dollar is looking for direction (will it bounce off this level or will it drop/ and how much?)
2. NFP tomorrow is HUGE data coming out and will push Dollar over or off the current level (price is now on a crucial support level )
3. Next inflation data (Dec 10) and trade balances will be crucial data
4. Dollar price will affect most of your trades:
- metals (negative correlation- especially Gold , Silver , Copper )
- indices (positive coefficients, which means that as the value of the U.S. dollar increases, so do the stock indexes )
- stocks (which shares to choose / which to sell / how to diversify and hedge - 40% of shares follow the dollar)
- Bitcoin (the new safe haven to many may increase dramatically if the dollar crashes)
⭐⭐⭐⭐⭐The MOST IMPORTANT CHART of the year ⭐⭐⭐⭐⭐1. Dollar is looking for direction (will it bounce off this level or will it drop/ and how much?)
2. NFP tomorrow is HUGE data coming out and will push Dollar over or off the current level (price is now on a crucial support level )
3. Next inflation data (Dec 10) and trade balances will be crucial data
4. Dollar price will affect most of your trades:
- metals (negative correlation- especially Gold , Silver , Copper )
- indices (positive coefficients, which means that as the value of the U.S. dollar increases, so do the stock indexes )
- stocks (which shares to choose / which to sell / how to diversify and hedge - 40% of shares follow the dollar)
- Bitcoin (the new safe haven to many may increase dramatically if the dollar crashes)