Trade weighted dollar: Deflationary crisis?
The setup is a monthly uptrend lasting at least until June, and with potential for at the very least 19.85% upside.
It's possible that the Euro is topping and will become an ideal short, to rejoin this general trend, and I don't expect to see broad dollar bears for the time being.
Now, how will this sway the Fed's intentions, since they consider that a stronger dollar is hurting their targets, and thus their plan of action?
This might be a catalyst for a stocks rally this year, but for now things remain volatile, so I'd advise caution.
Check my gold , eurusd and SPY charts for more information on my perspective on said instruments.
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USDCLP acting great, USDZAR also looks good.
USDMXN has fired a nice long too, I posted it separately.
USDCNH might need more time to set up.
There's very strong support at May 2015's low though, that would be my guess as to where it stops.
If we manage to move above the mode on close during March, then the odds of continuation decrease. (that would be 90.83 in this chart)