The dollar is still inside this bullish channel. Currently pulling back to an area of least resistance before continuing upwards. If we see this area broken then be prepared for the dollar to turn bearish.
Hi friend, Lets not be in a hurry. I think $ is fairly valued now not withstanding rate hike and tapering. Why? 2 reasons stand out: 1) 10 year yield is now trading at pre-pandemic levels. 2) Fair value of DXY stretching back 20 years is around 96.00. Meaning if you take the highest - lowest, the midpoint is 96.0, which is where DXY is now.
Also, in the charts, it is now trading at the top of the channel and weekly RSI is above 70.
Lets be careful when Buying.
Good luck.
Jbirtles
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@i_am_siew, Hi mate, thanks for the feed back! Be interesting to see what happens next. Do you have any predictions to how this will effect gold, this being one of my most traded pairs?
Lets not be in a hurry. I think $ is fairly valued now not withstanding rate hike and tapering.
Why?
2 reasons stand out:
1) 10 year yield is now trading at pre-pandemic levels.
2) Fair value of DXY stretching back 20 years is around 96.00. Meaning if you take the highest - lowest, the midpoint is 96.0, which is where DXY is now.
Also, in the charts, it is now trading at the top of the channel and weekly RSI is above 70.
Lets be careful when Buying.
Good luck.