DXY ... WOW!! A major reversal is coming to the dollar
It will affect all these pairs - NU/USD EUR/USD GBP/USD USD/JPY AU/USD
The economy in the USA is doing great. lowest unemployment numbers in 17 years. Fed is slowly increasing rates. Even if inflation isnt moving up yet, Fed is still raising rates to have some ammunition for the next recession. Keep in mind inflation is a lagging indicator, by the time you start getting it whipping through the economy, its to late. Also, the first thing to show inflation isnt durable goods etc, its Assets. Large Assets in the US are inflating, houses are increasing in value at a strong pace.
The market has been bearish on the dollar for a long time dating back to march of 2017, even as far back as November of 2016. Market is bearish, fundamentals are strong. It doesnt add up. So it seems the pressure is building for the dollar to be bullish. Now throw in the technical analysis with a very nice bullish Bat on the WEEKLY chart with an RSI at 33. We are not there yet but we are getting very very close to a turn around in the dollar.
The economy in the USA is doing great. lowest unemployment numbers in 17 years. Fed is slowly increasing rates. Even if inflation isnt moving up yet, Fed is still raising rates to have some ammunition for the next recession. Keep in mind inflation is a lagging indicator, by the time you start getting it whipping through the economy, its to late. Also, the first thing to show inflation isnt durable goods etc, its Assets. Large Assets in the US are inflating, houses are increasing in value at a strong pace.
The market has been bearish on the dollar for a long time dating back to march of 2017, even as far back as November of 2016. Market is bearish, fundamentals are strong. It doesnt add up. So it seems the pressure is building for the dollar to be bullish. Now throw in the technical analysis with a very nice bullish Bat on the WEEKLY chart with an RSI at 33. We are not there yet but we are getting very very close to a turn around in the dollar.
Comment:
please keep in mind This is a weekly chart...