FRED:DTWEXM   Trade Weighted U.S. Dollar Index: Major Currencies
I believe we are headed toward a stronger dollar. In the chart is the trade weighted dollar index             , which is a larger basket of foreign currencies than $DXY             ... $DXY             is mostly pegged to the EUR/USD             with around 65% of its currencies reflecting the Euro             or currencies that are heavily reliant on the Euro             . The trade weighted index is therefore a better representation of the dollar as it factors in more currencies.

Bullish divergence has formed in the chart above on the RSI as well as the MACD . Previous bullish divergence (shown) lead to a trend change and ~9% gain in the dollar. Looking for a consolidation 89-90 level then a breakout higher.

One catalyst for this move would be President Trump's repatriation of overseas dollars. I am already under the assumption that that world is short dollar supply, thus this repatriation would further choke the supply. I believe that this will cause a correction in the stock market.

Subsequent plays: short commodities , short emerging markets, long precious metals, long dollars, and long yields.

*not a pro trader & this is not advice
Great Analysis, Thanks Greg
Reply
EN English
EN English (UK)
EN English (IN)
DE Deutsch
FR Français
ES Español
IT Italiano
PL Polski
SV Svenska
TR Türkçe
RU Русский
PT Português
ID Bahasa Indonesia
MS Bahasa Melayu
TH ภาษาไทย
VI Tiếng Việt
JA 日本語
KO 한국어
ZH 简体中文
ZH 繁體中文
AR العربية
HE עברית
Home Stock Screener Forex Screener Crypto Screener Economic Calendar How It Works Chart Features House Rules Moderators Website & Broker Solutions Widgets Stock Charting Library Feature Request Blog & News FAQ Help & Wiki Twitter
Profile Profile Settings Account and Billing My Support Tickets Contact Support Ideas Published Followers Following Private Messages Chat Sign Out