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littleredshiptrading
Jan 4, 2019 2:28 PM

Dollar sell continues to gain traction- now bolstered by fundies Short

U.S. Dollar Currency IndexTVC

Description

Alright folks,

I identified a sell zone in dollar (dxy) way back in May 2018. In October we reached the zone (linked), and since then we've kind of stagnated below the sell zone. Now- with the holidays out of the way, my prediction stays true- Dollar will be a sell in 2019. Not only does my method line up with the prediction, but now fundamentals are starting to align as well for the following reasons...

1. Generally, the market doesn't expect the FED to raise rates in 2019
2. BONDS have bolstered this idea, as they've fallen at or below the FED funds rate
3. Trump vehemently supports a weaker dollar
4. Inflation has taken a down turn, however; JOBS have not (this will be key to watch and will give good ideas as to where FED will take rates and if we enter a recession)
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