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US DOLLAR CURRENCY INDEXWill the US Dollar Collapse? How, When, and What to Do If That Did Occur A dollar collapse is when the value of the U.S. dollar plummets. In that scenario, anyone who holds dollar-denominated assets will sell them at any cost. That includes foreign governments that own U.S. Treasurys. It also affects foreign exchange futures traders. Last but not least, it will hit individual investors. When the crash occurs, these parties will demand assets denominated in anything other than dollars. The collapse of the dollar means that everyone is trying to sell their dollar-denominated assets, and no one wants to buy them . This will drive the value of the dollar down to near zero. It would make hyperinflation look like a day in the park. Two Conditions That Could Lead to a Collapse Two conditions must be in place before the dollar could collapse. There must be an underlying weakness in the value of the U.S. dollar, and there must be a viable alternative. In other words, there must be a reason people are fleeing the dollar and there must be somewhere for them to go . Otherwise, the dollar will remain the world's global currency. The majority of international contracts demand a dollar payment, so that also adds to its stability. Underlying Weakness The dollar is not exhibiting an underlying weakness. Between January 2008 and 2020, the dollar has strengthened by 30%, from 89.2 to 115. The coronavirus pandemic strengthened it a further 10%, rising as high as 126.4 on March 23, 2020. Why? The U.S. economy is still seen as the strongest in the world. Investors trust the U.S. government will back its currency . The dollar's strength is based on its use as the world's reserve currency. The dollar became the reserve currency in 1971 when President Richard Nixon abandoned the gold standard. As a global currency, the dollar is used for half of all cross-border transactions. That requires central banks to hold the dollar in their reserves to pay for these transactions . As a result, 61% of these foreign currency reserves are in dollars. Viable Currency Alternative There is no viable currency alternative for everyone to buy. The next most popular currency after the dollar is the euro. But it comprises only 21% of central bank reserves. China and others argue that a new currency should be created and used as a global currency. China would like it to be its currency, the yuan. That would boost China's economic growth. China has not taken enough steps to make its currency widely traded. It's only 2% of central bank foreign currency reserves. Bitcoin's value is highly volatile because there's no central bank to manage it . It's also become the coin of choice for the black economy . Economic Event that Could Trigger a Collapse A collapse couldn't occur without a triggering event that destroys confidence in the dollar . Altogether, foreign countries own more than $6 trillion in U.S. debt. The two largest are China and Japan. If they dump their holdings of Treasury notes, they could cause a panic leading to collapse. China owns nearly $1 trillion in U.S. Treasurys. Japan, in turn, owns more than $1.2 trillion in Treasurys. It also wants to keep the yen low to stimulate exports to the United States. Japan is moving out of a 15-year deflationary cycle. The 2011 earthquake and nuclear disaster didn't help. The economies of Japan and China are dependent on U.S. consumers. They know that if they sell their dollars, their action would further depress the value of the dollar. So their products, still priced in yuan and yen, would cost relatively more in the United States . Their economies would suffer. Right now, it's still in their best interest to hold on to their dollar reserves. China and Japan are aware of their vulnerability. They are selling more to other Asian countries that are gradually becoming wealthier. But the United States is still the best market in the world . These articles are coming from various sources.
TVC:DXYLong
by RyodaBrainless
DXY US political developmentsUS political developments and their impact on the dollar : Here is a principle for you to remember: The value of the dollar decreases during the Republican era and increases during the Democratic era. Of course, this is done with a certain time priority after the elections. This is a long-term priority for the transition from Republicans to Democrats. That is, prices will last until they form a reversal. As I publish my analysis of the dollar index, Joe Biden has been declared the winner of the US presidential election with 290 electoral votes. Do not forget that it will take time for the dollar to appreciate after the Democrats came to power! And the price continues to decline for some time. This means that the scenario you see in the chart is possible. And the target can be touched. Of course, note that this is just an analysis and probability and a hypothesis! But it can give us a good perspective on doing the right thing.
TVC:DXYShort
by mr_index
USDJPY: Important Breakout & Bearish Continuation USDJPY finally broke and closed below 104.0 major structure support on 3d/d timeframes. now this structure turned to resistance. In my view this breakout defines midterm/long-term sentiment on the pair and sellers will push lower. we can not define the exact time horizon for now, but the next goals for sellers are: 103.1 101.2 (it is not a trading recommendation, I will be looking for a retest of the broken level first to join this short rally)
Short
by VasilyTrader
12
EURUSD: Daily Time Frame Analysis & Key Levels hey traders, due to uncertainty with elections, it is quite hard to find a decent trading opportunity. the instruments are quite volatile and chaotic at the moment so I am waiting until it settles. On eurusd after a bounce from the current structure low, the price is currently attempting to break above a major falling trend line that served as the resistance. depending on the reaction of the market on that, here are the key daily levels to consider: Support 1 - 1.16 - 1.162 current daily structure low Resistance 1 - 1.185 - 1.187 last daily lower high Resistance 2 - 1.195 - 1.20 remember that if daily candle closes above the trend line, if it serve us support. key levels are used as goals for our trades and as points from where we open them!
by VasilyTrader
13
ANALYSIS ON EURUSDHello, my fellow traders hope you all are making some profits. We are here with our new analysis so that we can increase those profits for you. Let’s get into it. As we can see, the price broke from its trendline and went down till its support. As per our analysis it will retrace. Let us know your views on this in the comment section. Thank you all. There is good news for our followers. We will be analyzing on-demand. So, let us know which pair you want our analysis on, and we will get it for you. Do like and follow us.
Long
by Ryan_lopes
You can be in these trades too, without spending hours analysingVery rarely can anyone 'really' back up their solution and trading strategy like this. They advertise hopes and dreams with profit shots without showing you 'how' and you see no proof. I know; so we were committed to provided proof. Now imagine trading in a way where you can live your normal life without being sat in front of the screen for hours a day or in your evenings or on a Sunday afternoon, just when your better half wants you to walk the dog, cook the tea or watch 'netflix and chil' with him/her. A way that removes subjectivity, discretion, emotion and ego from your trading... There is no need for the market to prove you right to make you feel more 'intellectually capable' or 'clever' ; you can be wrong more than you're right and still make profit. Imagine a way of trading where you find consistency, belief and confidence in your trading and you achieve the consistency you are looking for. A way of trading where you can be present, where you can live your life and trading just happens in the background without you worrying or getting angry or depressed about it; being able to have a coffee with friends and listen and participate in a conversation without your right hand grabbing your phone to check your MT4 screen. What if you were also the right side of the trend not trying to catch the top of the move for sell; or the low of a move for a buy, that's quite refreshing right? Not fighting the market BUT in fact going with it. Have you also not thought that, yes 90% of traders fail; we read about it everywhere. Why though? Probably because they are all trading the same way and doing the same thing? Drawing pretty lines on their charts instead of trading in a 'mechanical way'. You need to stop following the herd, it will lead you to the 90% section. Why listen to me, here the why..... Back when the coronavirus hit at the start of the year I was continually the wrong side of the market. Using my technical analysis I was trying to predict when the market would reverse from an area of support or resistance or a trend line break, etc. I would wait for confirmation of this in price action (yes visible rejection, pin bar, engulfing candle - all that BS) and convince myself that this was a solid trade and that my analysis was correct.... WRONG! Only to hit stop loss and for the market trend to continue. You think 'it cant keep going up' right? So you sell again, guess what? Yes it keeps going up. You're pretty pissed off and now chasing this loss..... It let me thinking there must be a better way. So I saught out to create one and had the idea of creating a strategy and a program or software that enabled anybody to trade even with no experience AND to be the right side of the market in these trends. I wanted to be in this big move, not desperately trying to find the 'sniper' entry for a rejection - don't even get me started on when I would then exit.... I tried many things and failed however through persistence and perseverance we created a trend trading strategy that worked.... Initially this was just a buy and sell strategy where are you follow the trend but I wasn't content with that, I couldn't PROOVE it worked. We continued to increase functionality and back testing so this could be achieved. I looked at money management techniques for stop loss placement and various different ways to manage the exit of the strategy to find the most profitable methods. We created something that works across all instruments that enables you to be the right side of the market by following the trend with integrated risk management. The ability to set your lot sizes with ease, instead of either guessing or using a 3rd party app to ensure you are really risking your 1%. Substantial back testing data to back up our edge was achieved. Eureka right? Your pain in blowing accounts, being angry and frustrated and impatient is now long gone as long as you take action Watch the video where I demonstrate how we enter a trade, how it shows on your screen, and the PROOF that you are desperately seeking to enable you to make an informed decision. Do this resonate? Take a look at our other trade ideas too and if you leave us a 'like' you will get a virtual high five from me. Regards Darren
by pow_removetheguesswork