DOLLAR INDEX| FLAG, STRUCTURE AND LEVEL 100|FUNDAMENTALS

Dollar Index is trading inside a flag formation, while also being within a horizontal structure and a massive level 100.

Level 100 is important, for the index was always pushed below it every time the index got above the level, for the last 5 years.

Let's see, who is stronger, the fed, the virus or the debtors, who desperately need dollars.

One who judges the dollar simply by looking at the fed's balance sheet is not getting the full picture.

The key idea about the currencies is that the exchange rate represents relative value, not the absolute one.

Dollar does not have to be good to get more expensive. It just has to be better than others, or, rather have more demand.

My understanding is that the corona-shock is deflationary for it removed a massive part of dollar denominated demand from the worlds biggest market.
Thus limiting the supply of dollars for the outsiders. So other countries can't earn dollars while having to pay back dollar denominated debts. Just look at the commodity prices outside of precious metals.Plus, the big companies are repatriating cash to patch the holes in their balance sheets.
Remember Delta's recent 11% bond offering?
That is a short to mid term outlook though. The fed and the government are trying to fix the imbalance of supply and demand and one can imagine they might as well overdo themselves.

Please, tell me what is your opinion on the issue!

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I wish you all luck in your trading!