Friday & today we can clearly see recovery of metals & crypto -But not stocks. Meaning, inflation hedging instruments are on the rise while the USD is diving. Makes a lot of sense.
What makes much less sense is the rally of USD between March to last week, the last 9-10 weeks. It was pushed by rate hike news and overall panic/investment liquidation.
But this is obviously a very temporary phase. What happens when the dust settles? Investment will be resumed. Where will the money go? Where every news article you see daily suggests. Inflation hedging instruments. Gold, Silver, Bitcoin, Ethereum, etc..
Now let's look at the technicals :
1) Trend-line since the beginning of March 2022 rally is broken down. Suggesting immediate down-trend in potential.
2) Head & Shoulder pattern with a 102.20 neck-line is suggesting a possible bounce as retest of the trend-line breakout at around 103. If no bounce up from neck-line happens and it continues lower - The next target is likely to be 101.20 - 100.80 very quickly and continued escalation up of metals and crypto.
3) 103.80-104.50 was key horizontal resistance of many, many years. It makes a lot of sense that it would stretch up to test it and would settle for highest point.
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It's broken! 101.20-100.80 is within immediate range :) Precious metals are gaining, looks like that's where the money is going
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Currently retesting neck-line of around 102.20-40 after reaching a low of 101.60!
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After the retest of 102.20-40 we see a retracement back down which is confirmation of resistance. 100.80 is the level to break for further downside