Falling towards overlap support?GBP/USD is falling towards the support level which is an overlap support and could bounce from this level to our take profit.
Entry: 1.3203
Why we like it:
There is an overlap support level.
Stop loss: 1.3056
Why we like it:
There is a pullback support level that lines up with the 50% Fibonacci retracement.
Take profit: 1.3412
Why we like it:
There is a pullback resistance level.
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Please be advised that the information presented on TradingView is provided to Vantage (‘Vantage Global Limited’, ‘we’) by a third-party provider (‘Everest Fortune Group’). Please be reminded that you are solely responsible for the trading decisions on your account. There is a very high degree of risk involved in trading. Any information and/or content is intended entirely for research, educational and informational purposes only and does not constitute investment or consultation advice or investment strategy. The information is not tailored to the investment needs of any specific person and therefore does not involve a consideration of any of the investment objectives, financial situation or needs of any viewer that may receive it. Kindly also note that past performance is not a reliable indicator of future results. Actual results may differ materially from those anticipated in forward-looking or past performance statements. We assume no liability as to the accuracy or completeness of any of the information and/or content provided herein and the Company cannot be held responsible for any omission, mistake nor for any loss or damage including without limitation to any loss of profit which may arise from reliance on any information supplied by Everest Fortune Group.
USD (US Dollar)
Bullish bounce?EUR/USD is falling towards the support level which is a pullback support that is slightly below the 38.2% Fibonacci retracement and could bounce from this level to our take profit.
Entry: 1.1278
Why we like it:
There is a pullback support level that is slightly below the 38.2% Fibonacci retracement.
Stop loss: 1.1149
Why we like it:
There is a pullback support level that aligns with the 61.8% Fibonacci retracement.
Take profit: 1.1428
Why we like it:
There is a pullback resistance level.
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Please be advised that the information presented on TradingView is provided to Vantage (‘Vantage Global Limited’, ‘we’) by a third-party provider (‘Everest Fortune Group’). Please be reminded that you are solely responsible for the trading decisions on your account. There is a very high degree of risk involved in trading. Any information and/or content is intended entirely for research, educational and informational purposes only and does not constitute investment or consultation advice or investment strategy. The information is not tailored to the investment needs of any specific person and therefore does not involve a consideration of any of the investment objectives, financial situation or needs of any viewer that may receive it. Kindly also note that past performance is not a reliable indicator of future results. Actual results may differ materially from those anticipated in forward-looking or past performance statements. We assume no liability as to the accuracy or completeness of any of the information and/or content provided herein and the Company cannot be held responsible for any omission, mistake nor for any loss or damage including without limitation to any loss of profit which may arise from reliance on any information supplied by Everest Fortune Group.
USDTRY: 6.8 | SHORT 5k Pips | LONG 38k Pipsbuilding a SHORT position for the SHAKEDOWN
and BASE BUILDING towards 10.0 levels
-
#LongShort
===
Fundamentals:
it takes 20years to settle debt or unfinished obligations by a company country and aliens...
til then.. its currency be it fiat land or spirit is devalued as form of compensation
in layman; a person heavily in debt lacks BARGAINING POWER over MAJOR folks
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see Germany's recovery
Heading into Fibonacci confluence?WTI Oil (XTI/USD) is rising towards the pivot and could reverse to the 1st support which acts as and overlap support.
Pivot: 65.19
1st Support: 61.85
1st Resistance: 67.84
Risk Warning:
Trading Forex and CFDs carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Forex and CFDs may not be suitable for all investors, so please ensure that you fully understand the risks involved and seek independent advice if necessary.
Disclaimer:
The above opinions given constitute general market commentary, and do not constitute the opinion or advice of IC Markets or any form of personal or investment advice.
Any opinions, news, research, analyses, prices, other information, or links to third-party sites contained on this website are provided on an "as-is" basis, are intended only to be informative, is not an advice nor a recommendation, nor research, or a record of our trading prices, or an offer of, or solicitation for a transaction in any financial instrument and thus should not be treated as such. The information provided does not involve any specific investment objectives, financial situation and needs of any specific person who may receive it. Please be aware, that past performance is not a reliable indicator of future performance and/or results. Past Performance or Forward-looking scenarios based upon the reasonable beliefs of the third-party provider are not a guarantee of future performance. Actual results may differ materially from those anticipated in forward-looking or past performance statements. IC Markets makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or any information supplied by any third-party.
Could the price reverse from here?Ethereum (ETH/USD) is rising towards the pivot which is an overlap resistance and could reverse to the 1st support which is a pullback support.
Pivot: 1.851.36
1st Support: 1,683.61
1st Resistance: 1,945.78
Risk Warning:
Trading Forex and CFDs carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Forex and CFDs may not be suitable for all investors, so please ensure that you fully understand the risks involved and seek independent advice if necessary.
Disclaimer:
The above opinions given constitute general market commentary, and do not constitute the opinion or advice of IC Markets or any form of personal or investment advice.
Any opinions, news, research, analyses, prices, other information, or links to third-party sites contained on this website are provided on an "as-is" basis, are intended only to be informative, is not an advice nor a recommendation, nor research, or a record of our trading prices, or an offer of, or solicitation for a transaction in any financial instrument and thus should not be treated as such. The information provided does not involve any specific investment objectives, financial situation and needs of any specific person who may receive it. Please be aware, that past performance is not a reliable indicator of future performance and/or results. Past Performance or Forward-looking scenarios based upon the reasonable beliefs of the third-party provider are not a guarantee of future performance. Actual results may differ materially from those anticipated in forward-looking or past performance statements. IC Markets makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or any information supplied by any third-party.
Bullish bounce?USD/ZAR is falling towards the pivot and could bounce to the 1st resistance.
Pivot: 18.42633
1st Support: 18.12402
1st Resistance: 18.77859
Risk Warning:
Trading Forex and CFDs carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Forex and CFDs may not be suitable for all investors, so please ensure that you fully understand the risks involved and seek independent advice if necessary.
Disclaimer:
The above opinions given constitute general market commentary, and do not constitute the opinion or advice of IC Markets or any form of personal or investment advice.
Any opinions, news, research, analyses, prices, other information, or links to third-party sites contained on this website are provided on an "as-is" basis, are intended only to be informative, is not an advice nor a recommendation, nor research, or a record of our trading prices, or an offer of, or solicitation for a transaction in any financial instrument and thus should not be treated as such. The information provided does not involve any specific investment objectives, financial situation and needs of any specific person who may receive it. Please be aware, that past performance is not a reliable indicator of future performance and/or results. Past Performance or Forward-looking scenarios based upon the reasonable beliefs of the third-party provider are not a guarantee of future performance. Actual results may differ materially from those anticipated in forward-looking or past performance statements. IC Markets makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or any information supplied by any third-party.
USD/MXN Continues to Fall Below the 20 Pesos per Dollar LevelOver the past five trading sessions, the USD/MXN pair has declined by more than 2%, as the Mexican peso continues to gain ground against the U.S. dollar. This bullish trend in the peso is partly driven by the ongoing weakness in the U.S. dollar, as reflected in the DXY index, which has fallen to 99 points, its lowest level in the past year.
The dollar’s weakness stems from the growing political and economic uncertainty generated by the global trade war, triggering a broad wave of dollar selling as capital exits the U.S. If this trend continues, the Mexican peso could maintain its bullish momentum in the short term.
Lateral Range Breakout
Since November 2024, USD/MXN had been trading within a sideways range, with resistance at 20.94 pesos per dollar and support at 20.00. In recent sessions, bearish pressure broke through this support, and as selling momentum builds, this could mark the start of a more meaningful downtrend.
MACD
The MACD histogram remains below the neutral zero line, indicating strong bearish momentum based on recent moving average trends. If the histogram continues to show deeper negative values, selling pressure could intensify further in the short term.
RSI
Currently, lower lows in price and higher lows in the RSI suggest the presence of a bullish divergence—an imbalance in recent selling momentum. This could create an opportunity for short-term bullish corrections to emerge.
Key Levels to Watch:
20.33 pesos per dollar: A key resistance level, aligned with the 100-period moving average. A return to this area could reactivate the previous range.
20.00 pesos per dollar: Another important resistance, now acting as a potential retest zone after previously serving as support. This could be a target for short-term pullbacks.
19.33 pesos per dollar: A significant support level, aligned with the neutral zone from September 2024. A move toward this level could reinforce the consolidation of a consistent bearish trend in upcoming sessions.
Written by Julian Pineda, CFA – Market Analyst
USDJPY Potential DownsidesHey Traders, in today's trading session we are monitoring USDJPY for a selling opportunity around 141.600 zone, USDJPY is trading in downtrend and currently is in a correction phase in which it is approaching the trend at 141.600 support and resistance area.
Trade safe, Joe.
Bearish drop?XAU/USD is rising towards the resistance level which is a pullback resistance that aligns with the 38.2% Fibonacci retracement and could reverse from this level to our take profit.
Entry: 3,419.43
Why we like it:
There is a pullback resistance that lines up with the 38.2% Fibonacci retracement.
Stop loss: 3,458.51
Why we like it:
There is a pullback resistance level that is slightly above the 61.8% Fibonacci retracement.
Take profit: 3,355.45
Why we like it:
There is a pullback support level that is slightly below the 61.9% Fibonacci retracement.
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Please be advised that the information presented on TradingView is provided to Vantage (‘Vantage Global Limited’, ‘we’) by a third-party provider (‘Everest Fortune Group’). Please be reminded that you are solely responsible for the trading decisions on your account. There is a very high degree of risk involved in trading. Any information and/or content is intended entirely for research, educational and informational purposes only and does not constitute investment or consultation advice or investment strategy. The information is not tailored to the investment needs of any specific person and therefore does not involve a consideration of any of the investment objectives, financial situation or needs of any viewer that may receive it. Kindly also note that past performance is not a reliable indicator of future results. Actual results may differ materially from those anticipated in forward-looking or past performance statements. We assume no liability as to the accuracy or completeness of any of the information and/or content provided herein and the Company cannot be held responsible for any omission, mistake nor for any loss or damage including without limitation to any loss of profit which may arise from reliance on any information supplied by Everest Fortune Group.
Potential bullish rise?USD/JPY is falling towards the support level which is a pullback support and could bounce from this level to our take profit.
Entry: 140.98
Why we like it:
There is a pullback support level.
Stop loss: 140.24
Why we like it:
There is a pullback support level that lines up with the 78.6% Fibonacci retracement.
Take profit: 142.41
Why we like it:
There is a pullback resistance level that lines up with the 78.6% Fibonacci retracement.
Enjoying your TradingView experience? Review us!
Please be advised that the information presented on TradingView is provided to Vantage (‘Vantage Global Limited’, ‘we’) by a third-party provider (‘Everest Fortune Group’). Please be reminded that you are solely responsible for the trading decisions on your account. There is a very high degree of risk involved in trading. Any information and/or content is intended entirely for research, educational and informational purposes only and does not constitute investment or consultation advice or investment strategy. The information is not tailored to the investment needs of any specific person and therefore does not involve a consideration of any of the investment objectives, financial situation or needs of any viewer that may receive it. Kindly also note that past performance is not a reliable indicator of future results. Actual results may differ materially from those anticipated in forward-looking or past performance statements. We assume no liability as to the accuracy or completeness of any of the information and/or content provided herein and the Company cannot be held responsible for any omission, mistake nor for any loss or damage including without limitation to any loss of profit which may arise from reliance on any information supplied by Everest Fortune Group.
Bullish bounce off 50% Fibonacci support?USD/CHF is falling towards the support level which is an overlap support that aligns with the 50% Fibonacci retracement and could bounce from this level to our take profit.
Entry: 0.8114
Why we like it:
There is an overlap support level that lines up with the 50% Fibonacci retracement.
Stop loss: 0.8067
Why we like it:
There is a pullback support level lines up with the 78.6% Fibonacci retracement.
Take profit: 0.8241
Why we like it:
There is a pullback resistance level.
Enjoying your TradingView experience? Review us!
Please be advised that the information presented on TradingView is provided to Vantage (‘Vantage Global Limited’, ‘we’) by a third-party provider (‘Everest Fortune Group’). Please be reminded that you are solely responsible for the trading decisions on your account. There is a very high degree of risk involved in trading. Any information and/or content is intended entirely for research, educational and informational purposes only and does not constitute investment or consultation advice or investment strategy. The information is not tailored to the investment needs of any specific person and therefore does not involve a consideration of any of the investment objectives, financial situation or needs of any viewer that may receive it. Kindly also note that past performance is not a reliable indicator of future results. Actual results may differ materially from those anticipated in forward-looking or past performance statements. We assume no liability as to the accuracy or completeness of any of the information and/or content provided herein and the Company cannot be held responsible for any omission, mistake nor for any loss or damage including without limitation to any loss of profit which may arise from reliance on any information supplied by Everest Fortune Group.
Bearish drop?EUR/USD is rising towards the resistance level which is a pullback resistance that lines up with the 38.2% Fibonacci retracement and could drop from this level to our take profit.
Entry: 1.1490
Why we like it:
There is a pullback resistance level that lines up with the 38.2% Fibonacci retracement.
Stop loss: 1.1559
Why we like it:
There is a pullback resistance level.
Take profit: 1.1399
Why we like it:
There is a pullback support level that is slightly above the 78.6% Fibonacci retracement.
Enjoying your TradingView experience? Review us!
Please be advised that the information presented on TradingView is provided to Vantage (‘Vantage Global Limited’, ‘we’) by a third-party provider (‘Everest Fortune Group’). Please be reminded that you are solely responsible for the trading decisions on your account. There is a very high degree of risk involved in trading. Any information and/or content is intended entirely for research, educational and informational purposes only and does not constitute investment or consultation advice or investment strategy. The information is not tailored to the investment needs of any specific person and therefore does not involve a consideration of any of the investment objectives, financial situation or needs of any viewer that may receive it. Kindly also note that past performance is not a reliable indicator of future results. Actual results may differ materially from those anticipated in forward-looking or past performance statements. We assume no liability as to the accuracy or completeness of any of the information and/or content provided herein and the Company cannot be held responsible for any omission, mistake nor for any loss or damage including without limitation to any loss of profit which may arise from reliance on any information supplied by Everest Fortune Group.
$DXY Repeating 2016 Post-Election I have highlighted the 2016 to 2020 Presidential Elections time period and then pasted that timeframe onto the 2024 election and found that the pattern is going along very similarly to Trump 1.0.
If we assume that the future unfolds the same as last time, which is low probability, of course, then the future will unfold as shown in the yellow bars going into the future, as shown.
Initially in 2016 post election there was a 7% rally in the U.S. Dollar Index and then a 15% retreat for the following year. So far in 2025 we have seen the same rally and a similar decline, but only faster this time.
It would appear as thought the bulk majority of the declines in the TVC:DXY are over at this time with perhaps 4% further downside over the balance of the year.
The Dollar Index has been useful for predicting changes in the earnings estimates for the S&P500 in the USA due to the high percentage of earnings coming back to the US for quarterly reporting. I have posted a few charts in the past which have been helpful at determining the risk in the stock market.
The behavior of the global central banks has certainly had its impact on monetary aggregates and inflation. The policy response since the Covid Pandemic has been for maximum liquidity and maximum Government spending to keep the global economy afloat. The post-Covid response is now coming to a head along with new policy directives to cut wasteful Government spending and to reduce inflation (caused the Gov't spending).
Global investors have flocked to the US for access to high technology stocks and have driven up the value of US assets to extreme levels compared to other markets. This adjustment phase where investors remove money from overvalued, or highly valued, US assets back to other markets has created a wave of selling in the US Dollar and US listed equities.
What does the future hold? We never know but we sure can learn from what happened in the past by looking at charts just like this one to see what may happen. Looks like a bounce in the TVC:DXY from here, followed by a new low and then a rebound into the next few years.
All the best,
Tim
April 22, 2025 1:16PM EST TVC:DXY 98.78 last
Has the Gold Rush Only Just Begun? A Bitcoin StoryIt is starting to look like we have entered a new trend on gold. Breaking out of the bullish trend, into a steeper one. The chart reminds me of the 1970's. Not the same but similar.
1970's US goes off the gold standard, money is now debt, USD becomes worthless when compared to gold (the time tested store of value that it is, of course)
Money printer go brrrr...
Now 2019. COVID, shut down the world, DWARF ALL OTHER LIQUIDITY INJECTION EVENTS COMBINED! I'm sensing a pattern.
It has amazed me at what we have got away with so far. Considering the magnitude of what Covid and the following response was. I honestly thought it would be much worse, but I don't think we have seen the full impact yet. I think it may take a decade or more before we see the extent of the fallout. Heck, or this could just be another step in the wrong direction that just continues us down the road of financial repression. Devaluing our currencies until they look closer to the yen while a majority of the population ie: the working class has no clue. Populism will continue to rise as people try to find the common enemy to blame/ hate because of their pent up rage, due things completely out of their control. The worst part is that they don't even know the real reason why this is happening.
Printing money (debt creation) is robbing from the future. Governments around the world have been stealing for decades. I only see one path ahead, and it's only going to get worse. The pot has been heating up, we are getting close to the boiling point. People are starting to realize how hot its getting.
I see, in the not to distant future, the possibility of a melt up in nominal terms. Time will tell, we will see how well the world governments handle this. Maybe they can manage this better than I expect. But if they cannot and the pace of the bull markets pick up into a parabolic trend due to the miss-management of debt. What goes up must come down. Asset bubbles will form and burst, as they do.
We are in a diabolical game of musical chairs.
All paths lead to Bitcoin, a redistribution of wealth to those willing to learn.
DXY Bearish Pennant Breakdown | More Downside Ahead?The U.S. Dollar Index (DXY) has broken down from a well-defined bearish pennant pattern on the 4H chart, signaling continuation of the prevailing downtrend.
🔹 Technical Setup:
Pattern: Bearish Pennant
Breakdown Level: Below 99.00
Target: ~94.50 based on pennant pole projection
Confirmation: Clear follow-through after breakdown, low volume consolidation
🔹 Fundamentals:
Weak U.S. economic data and dovish Fed expectations continue to weigh on the dollar.
Rising gold and commodity prices further support DXY downside.
📌 Outlook: As long as DXY trades below 99.00 resistance, bearish momentum is likely to extend toward the 94.50 target zone.
NOTE: This is not financial advice. Trade at your own risk. Always do your own research.
Dollar Milkshake Theory: Will the US Dollar Suck the World Dry?Imagine a colossal milkshake party where every country brings its own flavor—sweet euros, tangy yen, spicy rupees—blended into a global liquidity shake. Now picture the United States, armed with a giant straw, slurping up every last drop while the rest of the world watches in dismay. 🍓🍫🍦 This vivid analogy isn’t just a quirky dessert dream—it’s the heart of Brent Johnson’s Dollar Milkshake Theory, a provocative economic idea that’s been shaking up financial circles since 2018. But is the US dollar really about to dominate the global economy, or will it choke on its own straw? Let’s dive into this creamy concoction of macroeconomics, recent trends, and global stakes—complete with a cherry of skepticism on top! 🍒
🥛 What’s the Dollar Milkshake Theory, Anyway?
Brent Johnson, CEO of Santiago Capital, isn’t just a wealth manager—he’s a financial storyteller who’s been stirring the pot with his Dollar Milkshake Theory. Picture this: the global economy is a giant milkshake, with frothy assets (stocks, bonds, commodities) floating on top, and the milk, cream, and sugar representing the cash flows between markets. The straw? That’s the US Federal Reserve’s monetary policy, sucking up liquidity when it tightens, leaving other economies parched.
Johnson’s core idea is simple yet bold: during global economic turmoil, the US dollar—thanks to its status as the world’s reserve currency—becomes a safe haven. Investors worldwide flock to it, driving its value skyward while other currencies wither. 🌎💰 Since 2008, global central banks have pumped roughly $30 trillion in liquidity into the system through quantitative easing (QE), creating a massive “milkshake” of money. But when the Fed raises rates, as it has in recent years, the US siphons that liquidity, leaving other nations scrambling to pay dollar-denominated debts.
Here’s the kicker: this isn’t a one-time sip. Johnson predicts a feedback loop where the dollar’s strength forces other countries to print more of their own currencies to buy dollars, further weakening their economies and reinforcing the dollar’s dominance. It’s a vicious cycle—a “milkshake” that could leave the global economy in a sticky mess. 🌀
📈 The Recipe for Dollar Dominance: Why the US Holds the Straw
Why does the US get to drink everyone else’s milkshake? It’s all about structural advantages baked into the global financial system:
Reserve Currency Status 💵: The US dollar has been the world’s reserve currency since the 1944 Bretton Woods Agreement. As of 2022, it accounted for 58% of global foreign exchange reserves, dwarfing the euro’s 20% share . From oil to copper, most global trade is priced in dollars, creating constant demand.
Deep Capital Markets 🏦: The US has the deepest and most liquid bond markets, especially for Treasuries, making it the go-to place for investors seeking safety during crises.
Higher Interest Rates 📊: When the Fed raises rates, as it did aggressively in 2022-2023 to combat inflation, the dollar becomes more attractive compared to currencies like the euro or yen, where central banks like the ECB and BOJ have been slower to tighten .
Global Dependence on Dollars 🌐: Over 60% of international reserves are in dollars, and many countries and corporations hold dollar-denominated debt. When the dollar strengthens, their debt burden skyrockets, forcing them to buy more dollars to service it .
Johnson argues this isn’t just a cyclical trend—it’s a structural feature of the modern financial system. As he put it on Real Vision in 2018, “The dollar’s dominance is structural, not cyclical”. The US doesn’t just sip the milkshake—it guzzles it, leaving others to scrape the bottom of the glass. 🥤
📅 2025 Reality Check: Is the Milkshake Theory Playing Out?
Fast forward to April 2025, and the global economy is a blender of chaos: trade tensions, high debt levels, and monetary policy shifts are whipping up a storm. Does Johnson’s theory hold water—or rather, milk? Let’s look at the evidence. 🕵️♂️
🟢 The Bull Case: The Dollar’s Straw Is Sucking Hard
DXY Strength in 2024-2025: The US dollar index (DXY) surged 7% in 2024, hitting a two-year high of 108.07 in November 2024, driven by US economic growth, tariffs, and global uncertainty . Despite a recent 8% drop over the last two months (from ~106.8 in mid-February 2025 to 98.423 as of April 22, 2025), the DXY remains near historic highs, aligning with Johnson’s prediction of dollar strength during stress.
Historical Precedents: During the 2020 COVID crisis, the DXY jumped as the Fed provided $450 billion in swap lines to ease dollar shortages globally, reinforcing the dollar’s safe-haven role. In 2022, Russia’s invasion of Ukraine pushed the DXY to a 20-year high of 114, as capital fled to the US amid Europe’s energy crisis.
Global Liquidity Squeeze: High-debt economies like Japan (debt-to-GDP at 255%) and the Eurozone (Italy at 139%, France at 112%) are under pressure. Capital flight to the US, especially if their growth falters, supports the milkshake effect.
Safe-Haven Demand: Posts on X reflect sentiment that the dollar’s strength is tied to its stability in an unstable world, with some users noting its “dug-in” status as global liquidity flows to the US .
🔴 The Bear Case: Is the Straw Starting to Bend?
Recent DXY Drop: The 8% decline in the DXY over the last two months (mid-February to April 2025) signals vulnerability. Trade war fears, threats to Fed independence, and a weakening US trade balance are weighing on the dollar. Some X users predict a further drop to 96-97, or even 87, if support levels break.
Fed Policy Shifts: The Fed began cutting rates in September 2024, which typically weakens the dollar by reducing its yield advantage. This move, aimed at balancing inflation and growth, could undermine the milkshake effect if it continues.
Dedollarization Efforts: BRICS nations are pushing to reduce dollar reliance, with China and India holding significant non-dollar reserves ($3,682 billion and $662 billion, respectively, as of April 2025). A shift toward commodity-based currencies could challenge the dollar long-term.
US Debt Concerns: The US’s soaring debt levels (over 120% of GDP in 2024) and inflation above the Fed’s 2% target raise questions about the dollar’s sustainability. If confidence in US fiscal health wanes, the milkshake could spill.
🌪️ What Happens If the Milkshake Theory Plays Out?
If Johnson is right, the global economy could face a bitter aftertaste. Here’s what a super-strong dollar might mean:
Currency Crises Abroad 💥: Countries with dollar-denominated debt—like many emerging markets—would struggle as their debt burdens soar. A stronger dollar means they need more of their own currency to buy dollars, potentially triggering defaults.
Commodity Price Slumps 📉: A rising dollar often leads to lower commodity prices (priced in dollars), hurting exporters like Brazil or Australia. This could stifle growth in developing economies.
US Export Woes 🚢: An overly strong dollar makes US goods pricier abroad, hurting American exporters. US companies could lose competitiveness, impacting economic growth.
Safe-Haven Asset Boom 🪙: Investors might flock to alternatives like gold or Bitcoin to hedge against currency devaluation. Gold recently hit $3,400 amid the DXY’s slide, and Bitcoin has seen gains as a “risk-on” asset.
Geopolitical Shifts 🌍: A dominant dollar could lead more countries to peg their currencies to the USD for stability, as 65 nations already do (e.g., Hong Kong, Saudi Arabia). But it might also accelerate dedollarization efforts, with BRICS nations seeking alternatives.
🤔 Skeptics Stir the Pot : Is the Milkshake Theory Too Sweet to Be True?
Not everyone’s sipping Johnson’s milkshake. Critics argue it’s more of a financial fairy tale than a robust theory:
Oversimplification 📊: The global economy is far more complex than a milkshake analogy. The theory focuses heavily on Fed policy but downplays other central banks’ actions, geopolitical tensions, and the rise of digital currencies.
Lack of Timeframes ⏳: Johnson’s predictions lack clear timelines, making them hard to test. As some X users have pointed out, being “too early” in financial markets is as good as being wrong.
Counter-Theories 🌐: Economist Zoltan Pozsar’s Bretton Woods III Theory suggests a shift toward commodity-based currencies in the East, potentially weakening the dollar. Post-Russia-Ukraine war, nations are diversifying away from the USD, favoring hard assets like gold.
US Vulnerabilities 🇺🇸 : The US’s own fiscal health—high debt, persistent inflation, and trade deficits—could undermine the dollar. Recent tariffs and supply chain shifts (e.g., moving away from China) may raise production costs, fueling inflation and slowing growth.
💡 What’s Next for the Dollar Milkshake in 2025 and Beyond?
As of April 22, 2025, the DXY’s recent 8% drop is a speed bump, not a derailment, for the Milkshake Theory. The long-term chart you provided projects the DXY climbing to 120-130 by the late 2020s, suggesting this dip might be a correction within a broader uptrend. But the road ahead is frothy with uncertainty:
Watch the Fed 🏛️: If the Fed continues rate cuts, the dollar’s yield advantage could shrink, slowing the milkshake effect. Conversely, renewed tightening could reignite dollar strength.
Global Crises ⚡: Ongoing trade wars, like US-China tensions, or new geopolitical shocks could drive more capital to the US, reinforcing the theory.
Dedollarization Risks 🌏: If BRICS nations succeed in reducing dollar reliance, the US straw might not suck as hard in the future.
🥛 Sip or Spill: Should You Buy Into the Milkshake Theory?
Brent Johnson’s Dollar Milkshake Theory is a compelling narrative that captures the US dollar’s unique power in a turbulent world. The evidence—DXY strength, historical crises, and global dollar demand—suggests there’s cream in this shake. But the theory isn’t without cracks: the US’s own vulnerabilities, dedollarization efforts, and the recent DXY dip remind us that even the mightiest straw can bend. 🥤
For investors, this means staying nimble. A stronger dollar could hurt emerging markets and commodities, but it might boost safe-haven assets like gold or Bitcoin. Keep an eye on Fed policy, global growth, and geopolitical shifts—they’ll determine whether the US keeps sipping or the milkshake spills. 🌍💸 What do you think—will the dollar dominate, or is the party over? Let’s hear your thoughts! 🗣️
Falling towards 61.8% Fibonacci support?The Bitcoin (BTC/USD) is falling towards the pivot and could bounce to the 1st resistance which is a pullback resistance.
Pivot: 85,389.36
1st Support: 83,252.81
1st Resistance: 92,478.49
Risk Warning:
Trading Forex and CFDs carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Forex and CFDs may not be suitable for all investors, so please ensure that you fully understand the risks involved and seek independent advice if necessary.
Disclaimer:
The above opinions given constitute general market commentary, and do not constitute the opinion or advice of IC Markets or any form of personal or investment advice.
Any opinions, news, research, analyses, prices, other information, or links to third-party sites contained on this website are provided on an "as-is" basis, are intended only to be informative, is not an advice nor a recommendation, nor research, or a record of our trading prices, or an offer of, or solicitation for a transaction in any financial instrument and thus should not be treated as such. The information provided does not involve any specific investment objectives, financial situation and needs of any specific person who may receive it. Please be aware, that past performance is not a reliable indicator of future performance and/or results. Past Performance or Forward-looking scenarios based upon the reasonable beliefs of the third-party provider are not a guarantee of future performance. Actual results may differ materially from those anticipated in forward-looking or past performance statements. IC Markets makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or any information supplied by any third-party.
USD/CAD - Channel Pattern (22.04.2025)The USD/CAD Pair on the M30 timeframe presents a Potential Selling Opportunity due to a recent Formation of a Channel Pattern. This suggests a shift in momentum towards the downside in the coming hours.
Possible Short Trade:
Entry: Consider Entering A Short Position around Trendline Of The Pattern.
Target Levels:
1st Support – 1.3771
2nd Support – 1.3745
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Bullish bounce?USD/ZAR is reacting off the pivot and could bounce to the 1st resistance.
Pivot: 18.71637
1st Support: 18.44436
1st Resistance: 19.07855
Risk Warning:
Trading Forex and CFDs carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Forex and CFDs may not be suitable for all investors, so please ensure that you fully understand the risks involved and seek independent advice if necessary.
Disclaimer:
The above opinions given constitute general market commentary, and do not constitute the opinion or advice of IC Markets or any form of personal or investment advice.
Any opinions, news, research, analyses, prices, other information, or links to third-party sites contained on this website are provided on an "as-is" basis, are intended only to be informative, is not an advice nor a recommendation, nor research, or a record of our trading prices, or an offer of, or solicitation for a transaction in any financial instrument and thus should not be treated as such. The information provided does not involve any specific investment objectives, financial situation and needs of any specific person who may receive it. Please be aware, that past performance is not a reliable indicator of future performance and/or results. Past Performance or Forward-looking scenarios based upon the reasonable beliefs of the third-party provider are not a guarantee of future performance. Actual results may differ materially from those anticipated in forward-looking or past performance statements. IC Markets makes no representation or warranty and assumes no liability as to the accuracy or completeness of the information provided, nor any loss arising from any investment based on a recommendation, forecast or any information supplied by any third-party.