Dollar Devaluation - DO NOT Be Fooled

Short

U.S. Dollar Currency Index (ICEUS:DXY)

Updated

ICEUS:DXY U.S. Dollar Currency Index

trendanalysis chartpattern indicator dxy dxyshort dxyanalysis dxyforecast dxysignals dxysell

This is an update to my last Dollar chart a few months ago. Once again, I've been bearish on the dollar for some time now, we see it has broken below support and is starting to fall. We got the break and close below the 93 support level which could lead to a free fall for the dollar. Now, we don't know the exact time frame for this all to happen, and when you zoom into the smaller time frame chart, there are support levels represented by the second line at the 95.50 level that could cause the price to bounce temporarily. Overall, the strength we've seen in Stocks, Gold, Silver, and Bitcoin shows the weakness of the Dollar, and I believe this will continue going into 2021. It's possible we see a bounce, but unless we see a large push back above the 100 level we should expect further weakness from the Dollar.

Comment:

Below you will see a zoomed-in weekly chart that shows a "possible" bullish falling wedge and the support level that could lead to a temporary bounce testing the moving averages before a further pushdown.

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