This post on DXY is pretty hard to contimplate but what is in the charts is in the charts. We have resistance that began to form around 2001 and that has been tested and confirmed both around the end of year 2016 and just recently in 2019.
The support has an even greater history, establishing itself from late 1987 to 1995 and then being confirmed in 2008. We have a consolidation triangle and a pop up to target and a bit of over-performance to get us to the resistance line and now the chart shows the possibility of chopping sideways for a couple of years or breaking down to the support line of the triangle. From there we drop like a stone to new lows or consolidate deeper into a macro triangle.
It doesn't help DXY that EURUSD, its larget is primed to move in favor of the euro Also CNYUSD, while not a component of DXY is at the base of a channel and looking to move in favor of CNY And also not part of the index is the Mexican Peso, which also looks to break against the dollar. Really all this suggest to me that I should continue to buy gold and silver
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DXY slipped the weekly EMA ribbon. Not a good look. USD is staged for a beatdown against the mexican peso CNYUSD looks like we are moving at least to the midline of the channel. Silver/CNY looks like an acceding triangle. The lower high on Gold/CNY sets up a devil of a retrace.
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Ooops, I posted the eurodollar instead of dxy. Here is DXY.
@LoLBeach, forex trading and buy precious metals would be the easiest.
CodedFlow
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@This_Guhy, gold is counter to dxy ? and for forex what pair would you go for ? UJ ? thank you !
FerroIgnique
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@LoLBeach, Gold is not always a counter to gold. Peter Schiff, who does podcasts and youtubes several times a month has covered that within the last 2, or 3 pod casts.
This_Guhy
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@FerroIgnique, you wrote gold twice. But broadly speaking, gold goes up when interest rates go down. SILVEr exploded as us interest rates hovered around zero and silver came down when interest rates went up.