What Inflation? US Dollar Breaks Out Into a New Bull Market
This is a momentous occasion! US Dollar just broke out into a new bull market.
Looking at the chart we can see that the Dollar index has closed above the Blue support-resistance line on July 13, 2021. This is a clear breakout. We can now expect new higher highs and higher lows for the US Dollar. Those that trade commodities and especially precious metals understand that stronger dollar will now pressure gold and silver.
The demise of the Dollar was greatly exaggerated. The inflation is also very likely not going to be an issue. Here I am referring to inflation as caused by "fear" of the unknown events (war, climate change, kakistocracy, etc.).
Inflation as related to imbalances between supply and demand may continue to be an issue.
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How to understand price action.
It is very easy to read price action if you have a reference point. These support/resistance lines are there to help you read where the buyers and sellers are likely to make a stand.
You can also think of these indicators as moving pivot points .
MasterChartsTrading Price Action Indicators show good price levels to enter or exit a trade.
The Blue indicator line serves as a Bullish Trend setter.
If your instrument closes above the Blue line, we think about going Long (buying).
For commodities and Forex, when your trading instrument closes below the Red line, we think about Shorting (selling).
For Stocks, I prefer to use the Yellow line as my Bearish Trend setter (on Daily charts ). A stock has to close below the Yellow line first, then rally towards the Red line and top out there. This is where I would short it.
Looking at the chart we can see that the Dollar index has closed above the Blue support-resistance line on July 13, 2021. This is a clear breakout. We can now expect new higher highs and higher lows for the US Dollar. Those that trade commodities and especially precious metals understand that stronger dollar will now pressure gold and silver.
The demise of the Dollar was greatly exaggerated. The inflation is also very likely not going to be an issue. Here I am referring to inflation as caused by "fear" of the unknown events (war, climate change, kakistocracy, etc.).
Inflation as related to imbalances between supply and demand may continue to be an issue.
---
How to understand price action.
It is very easy to read price action if you have a reference point. These support/resistance lines are there to help you read where the buyers and sellers are likely to make a stand.
You can also think of these indicators as moving pivot points .
MasterChartsTrading Price Action Indicators show good price levels to enter or exit a trade.
The Blue indicator line serves as a Bullish Trend setter.
If your instrument closes above the Blue line, we think about going Long (buying).
For commodities and Forex, when your trading instrument closes below the Red line, we think about Shorting (selling).
For Stocks, I prefer to use the Yellow line as my Bearish Trend setter (on Daily charts ). A stock has to close below the Yellow line first, then rally towards the Red line and top out there. This is where I would short it.
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@mastercharts
Visit my financial blog & get alerts : www.masterchartstrading.com/blog
@mastercharts
