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Algokid
Jun 21, 2012 8:06 PM

The "D" word (deflation) 

US DOLLAR CURRENCY INDEXINDEX

Description

USD is testing it's 10 yr resistance right now . It's actually broke the resistance and actually testing as support. further increase in price in the USd MAY signal more deflation in commodities. We 'll see
Comments
ATMcharts
You can clearly see the corrective uptrend from mid 2011 to mid 12' has ended. Now a clear H&S has formed(I see you had no way of knowing in sept). I'll change my tune over 82.
johangradin
It's interesting to watch, especially in the USD/JPY and it's correlations with 10y & 30y, more pieces amalgamating towards deflation. The Euro is surprisingly resiliant through all of this though, it's remarkable.
charttrader
Followed.
timwest
Agreed.
timwest
You can see that the "trend" from that high in 2002 has broken several times... so... this is what is called a "fan" as I recall that Martin Pring discusses in his Technical Analysis compendium. Note 2008 - early 2009 - 2010 were the other breaks... And don't you love how confident the world has been that the US Dollar was headed for a deep plunge and here we are... sideways after the last 7 years... Markets are so fascinating. Cheers. Keep up the good work Algo kid.
Algokid
Hey Tim, nice to hear from you again. Thank you for the support : )
StockFxMarket
Well done ALgo_kit
Algokid
thank you
StockFxMarket
Agreed.
Algokid
The dollar is at a 2 -year high right now, meaning more pain for the euro and Commodities. Keep a close eye on basic materials (IYM) if the support is broken, this could indicate more bad days for the market ( see chart) tradingview.com/e/k7vxeN0X/
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