Hi all,
In this Idea/analysis I use the 1 month candle chart to get a wider view. I use the 10 EMA Smoothed and the 50 Moving Average Smoothed as my momentum indicators.
I have also used the trend based fib extension form the swing high of 2002 to the swing low of 2008 back to the swing high of late 2016,
giving me future support and resistance lines to work with, some may say supply and demand but I personally struggle to distinguish between the two.
What is the DXY?
The DXY is a basket of fiat currencies that comprise of six regions/countries they are as follows:
Euro, Yen, British Pound, Canadian Dollar, Swedish Krona and the Swiss Franc all with independent weightings the biggest being the Euro weighted at approximately 57.6%
Why dose the DXY rise?
With uncertainty in the markets today we see big players selling their native fiat currencies and buying the US Dollar as it is the safest bet being the worlds reserve currency. This would drive up demand for the US Dollar while foreign currencies will fall due the the selling of their own currencies for the US Dollar. This is just one example.
Big Banks have forecast for further gains for the US Dollar which lines up with my analysis for the future growth/demand for the DXY.
What dose this mean for other markets?
As the US Dollar goes up in value the underlying assets connected to the US Dollar also go up this incudes the American stock market, bond market and others connected to the US Dollar.
So as the British Pound has fallen recently it is now far more expensive for the British to buy goods from America due the the fall in the Pound this incudes the stock market and all that denominate under the US Dollar this goes for other countries too.
My forecast for the US Dollar
I see a 10 year rally underway meaning that it would appear the stock market is selling off with most markets following suet as people and big players sell their liquid stock positions for the US Dollar as the selloff continues it would appear to match up with my Gold production of a multi decade Gold run.
As you can see the US Dollar will have a nice pullback around 2023 indicating a nice rally in the stock market if this plays out a lower high will form before a continuation to the downside and the continuation for the DXY to rise.
I hope this was of some interest to you on my view of the DXY.
I am NOT a finical adviser if you seek financial aid seek the help from a licenced professional.
In this Idea/analysis I use the 1 month candle chart to get a wider view. I use the 10 EMA Smoothed and the 50 Moving Average Smoothed as my momentum indicators.
I have also used the trend based fib extension form the swing high of 2002 to the swing low of 2008 back to the swing high of late 2016,
giving me future support and resistance lines to work with, some may say supply and demand but I personally struggle to distinguish between the two.
What is the DXY?
The DXY is a basket of fiat currencies that comprise of six regions/countries they are as follows:
Euro, Yen, British Pound, Canadian Dollar, Swedish Krona and the Swiss Franc all with independent weightings the biggest being the Euro weighted at approximately 57.6%
Why dose the DXY rise?
With uncertainty in the markets today we see big players selling their native fiat currencies and buying the US Dollar as it is the safest bet being the worlds reserve currency. This would drive up demand for the US Dollar while foreign currencies will fall due the the selling of their own currencies for the US Dollar. This is just one example.
Big Banks have forecast for further gains for the US Dollar which lines up with my analysis for the future growth/demand for the DXY.
What dose this mean for other markets?
As the US Dollar goes up in value the underlying assets connected to the US Dollar also go up this incudes the American stock market, bond market and others connected to the US Dollar.
So as the British Pound has fallen recently it is now far more expensive for the British to buy goods from America due the the fall in the Pound this incudes the stock market and all that denominate under the US Dollar this goes for other countries too.
My forecast for the US Dollar
I see a 10 year rally underway meaning that it would appear the stock market is selling off with most markets following suet as people and big players sell their liquid stock positions for the US Dollar as the selloff continues it would appear to match up with my Gold production of a multi decade Gold run.
As you can see the US Dollar will have a nice pullback around 2023 indicating a nice rally in the stock market if this plays out a lower high will form before a continuation to the downside and the continuation for the DXY to rise.
I hope this was of some interest to you on my view of the DXY.
I am NOT a finical adviser if you seek financial aid seek the help from a licenced professional.
My view is that the dollar is still on an upward trajectory with a short to mid term down trend in play.