Dollar Index, DXY
The US dollar 🇺🇸 closed at highs for 8 out of 9 months in 2022. The last time this happened was in 2014-2015. The difference between that time and now is that in 2014-2015 different countries actively devalued their currencies for comfortable export prices. Now their weak currencies are ruining the economy as many countries depend on net fuel and crop exports. The decline of other currencies against the US dollar increases inflation in these countries. And it looks like investors are looking for a safe haven for money that will have value amid tight geopolitics and a recession.
👉As we said earlier, the DXY Dollar Index has completed or almost completed the growth in a five-wave impulse. A drop below 110.20 would be a confirmation of this scenario, and the dollar will go into correction for several months. The first downside target is 105. A rise to 120 is allowed to complete the momentum.
The US dollar 🇺🇸 closed at highs for 8 out of 9 months in 2022. The last time this happened was in 2014-2015. The difference between that time and now is that in 2014-2015 different countries actively devalued their currencies for comfortable export prices. Now their weak currencies are ruining the economy as many countries depend on net fuel and crop exports. The decline of other currencies against the US dollar increases inflation in these countries. And it looks like investors are looking for a safe haven for money that will have value amid tight geopolitics and a recession.
👉As we said earlier, the DXY Dollar Index has completed or almost completed the growth in a five-wave impulse. A drop below 110.20 would be a confirmation of this scenario, and the dollar will go into correction for several months. The first downside target is 105. A rise to 120 is allowed to complete the momentum.