Twin deficit has resurfaced as a driving force towards DXY decline. At this point pairs are being controlled by psychological trend levels.
Presented is the DXY day chart. We can see a clear drop for a retest of the 2018 low which in contrast brings pairs such as NZDUSD, EURUSD, GBPUSD, etc to levels breached in Jan 2018.
A fundamentalist like myself begins to wonder if Twin Deficit sentiment is the ultimate driving factor for these psych occurrences taking place in 2018 and current. While COVID would be a logical main factor, ultimately any factor that would push double negative accounts.
Attached is my previous DXY idea as well as my 2018 high retest idea of USD pairs I published over a month ago. Anyone patient enough to hold USD pairs have certainly played their cards well.
Expect a retest of 88.225 to match 2018 with a higher breach probability for a new low.
Please comment with any thoughts and Ideas. Thank you.