Is history about to repeat itself once again.
The dollar has enjoyed a spat of Bullishness since may last year. It seems to be slowing down at present though.
Running into Monthly fibonacci levels at present the .702 is holding. I'd like to see a close below the .618 next to confirm the move to the downside, targeting D extension @ 84.6
Because the market likes round numbers, I wouldn't be surprised to see a final push up towards the .786 aka 100. Technically price can push as high as 102 and still be printing Lower Highs on the weekly and monthly timeframes. This is bearish price action, given the state of the world economy at present. Especially the USD, I can't see the DXY making an impulsive move upwards. This leads me to believe that the local top for DXY is nearly in and with it a bearish couple of months will follow.
On a macro-economic level, what we could see playing out here is essentially the collapse of the US Dollar. It has maintained dominance and world reserve status due to the petrodollar. As the US pushes for sanctions more countries are moving away from the Dollar. One significant move has been the rise of the Petroyuan. China's response to economic warfare committed by the US. Once this is fully established demand for the Dollar will not only go down, it will collapse. Not to mention the US currently has inflation at around 8% whilst China is sitting pretty at around 0.9%.
There is a clear winner here and it is not the dollar. So either a miracle happens or we are about to witness a new world order. Time will tell, either way what we're witnessing is a massive shift in the global powers. The USA is on its last legs and they seem to be digging an even bigger hole than the one they're already in.
The dollar has enjoyed a spat of Bullishness since may last year. It seems to be slowing down at present though.
Running into Monthly fibonacci levels at present the .702 is holding. I'd like to see a close below the .618 next to confirm the move to the downside, targeting D extension @ 84.6
Because the market likes round numbers, I wouldn't be surprised to see a final push up towards the .786 aka 100. Technically price can push as high as 102 and still be printing Lower Highs on the weekly and monthly timeframes. This is bearish price action, given the state of the world economy at present. Especially the USD, I can't see the DXY making an impulsive move upwards. This leads me to believe that the local top for DXY is nearly in and with it a bearish couple of months will follow.
On a macro-economic level, what we could see playing out here is essentially the collapse of the US Dollar. It has maintained dominance and world reserve status due to the petrodollar. As the US pushes for sanctions more countries are moving away from the Dollar. One significant move has been the rise of the Petroyuan. China's response to economic warfare committed by the US. Once this is fully established demand for the Dollar will not only go down, it will collapse. Not to mention the US currently has inflation at around 8% whilst China is sitting pretty at around 0.9%.
There is a clear winner here and it is not the dollar. So either a miracle happens or we are about to witness a new world order. Time will tell, either way what we're witnessing is a massive shift in the global powers. The USA is on its last legs and they seem to be digging an even bigger hole than the one they're already in.
