USD preparing to break down from descending wedge
No surprises here, just a price target. I imagine that global demand for USD is on a sharp decline since the recent events in DC. Money printer go brrrrr for extra stimulus. The fundamentals are bad enough to cause a bullish formation to head south. The next destination is around an 81 handle, or about a 10% decline. I'm not sure on the timeline, but would imagine around or before November 1st. This trend could be counteracted by an increase in taxes (increasing demand), increasing stability within the US and improving economic circumstances to the point that nobody needs additional stimulus. I think we'll meet one or maybe two of these conditions if we're lucky. I don't even see a reason to mention the price target to the upside. Tell your family you love them.
Comment:
Well, we saw a tax increase. We saw increased stability. We saw the end of nearly all stimulus and we saw the money printer begin to wind down. Looks like we're heading up. That 97-100 area is a possible rejection zone. With the potential threat of lockdown looming yet again and uncertainty high, I wouldn't confidently say we'll reach that bullish price target. We've recently broken north of a broadening wedge. The dollar on paper looks bullish as hell.