DXY -- Its time for Dollar to Collapse - We did it
The DXY was supposed to head to 99.00 handle before any correction comes due . Now we have achieved 98.91 area . We might shoot into 99.00 area but then collapse.
US Govt administration and Markets wants the Dollar weaker. They say its too strong. its now becoming a tax to corporate business. The next levels for the dollar in the next 3-months
-- 97.50 Area
-- 97.00 Handle
-- 96.70 Area
-- 96.00 handle
-- 95.35 Area
After the 95.30 we will consolidate and swing up a bit before we continue down
US Govt administration and Markets wants the Dollar weaker. They say its too strong. its now becoming a tax to corporate business. The next levels for the dollar in the next 3-months
-- 97.50 Area
-- 97.00 Handle
-- 96.70 Area
-- 96.00 handle
-- 95.35 Area
After the 95.30 we will consolidate and swing up a bit before we continue down
Comment:
FOMC did damage last time to DXY but this time they made the DXY rally because the market is not sure if there are further US FED interest rate cuts coming ( Free money ). The Markets are notorious for baking its cake and eating it too
Comment:
EUR/USD slides to 1.1026 area, lowest since May 2017 on USD demand. Next EURUSD levels to watch on the downside
-- Low of 1.0920 on 26-07-2016 & 22-06-2016
-- Low of 1.0820 on 20-10-2016, 17-07-2015 & many other day ( Major support and is also 23.6% Fibonacci retracement of 1.0317 to 1.2535 move )
On the Upside,
-- we first need to break 1.1110 , 1.1157, 1.1191, 1.1288
We are now very oversold on daily EURUSD and very overbought on daily DXY .
What's next ? what gives ?
-- Low of 1.0920 on 26-07-2016 & 22-06-2016
-- Low of 1.0820 on 20-10-2016, 17-07-2015 & many other day ( Major support and is also 23.6% Fibonacci retracement of 1.0317 to 1.2535 move )
On the Upside,
-- we first need to break 1.1110 , 1.1157, 1.1191, 1.1288
We are now very oversold on daily EURUSD and very overbought on daily DXY .
What's next ? what gives ?
Comment:
As we did predict the USD collapsed from 99.00 back to 97.01 before President trump tweets a few days ago . We have bounced and tested 98.01 to 98.13 Resistance Area and now we will most likely resume the USD trend lower in the short-term before we catch any fundamental bids or "BIG BOYS " bids.
USD RSI on 4-Hr chart is Overbought and daily RSI is heading south .
Expect DXY to fall back to test 97.01 or EURUSD power up to test 1.1200 handle in short-term ( 1 to 2 weeks )
USD RSI on 4-Hr chart is Overbought and daily RSI is heading south .
Expect DXY to fall back to test 97.01 or EURUSD power up to test 1.1200 handle in short-term ( 1 to 2 weeks )
Comment:
Should we just buck up the truck and buy a boat load of EURUSD because ECB is going to start QE in excess and USD will continue rising to 100 like a rocket . Nothing can touch USD ( King Dollar ) ? Well my friends its not very easy as it looks
Geo-Politics and Trade Wars:
1. Trump wants a weaker king Dollar but will he get it ?
2. 25 bps in July 2019 FED Interest cut didn't not affect the King Dollar
3. US Treasury Bonds yields have been falling like a ton of Concrete Stone
4. ECB is front-Running the EURUSD , QE and interest rates
5. US-China Trade war plus Currency war and Hong Kong fiasco
6. Brexit
7. Euro Zone enters Technical recession with Germany leading the way
8. Italy Garbage politics
9. Over US$ 22 Trillion of Bond yields assets across the World are in Negative ( The highest ever ) -- a Slow moving disaster .
The problem is that the World Economy is so much uncertain and its slowing down such that USD is now the Safe currency and thats creating the buying for USD making the King Dollar stronger. The Bond Yield inversion ( 10yr - 2Yr ) or (10Yr - 3M) are starting to signal a technical recession is coming in the US in the next 18 months.
The King Dollar will breakdown as long as the Markets feel that US-China Trade War ( Trumps Trade Wars ) are contained and not spreading like wild fire otherwise you might as well back up the truck and buy a boat load of everything else that is not the Dollar or Yuan
Geo-Politics and Trade Wars:
1. Trump wants a weaker king Dollar but will he get it ?
2. 25 bps in July 2019 FED Interest cut didn't not affect the King Dollar
3. US Treasury Bonds yields have been falling like a ton of Concrete Stone
4. ECB is front-Running the EURUSD , QE and interest rates
5. US-China Trade war plus Currency war and Hong Kong fiasco
6. Brexit
7. Euro Zone enters Technical recession with Germany leading the way
8. Italy Garbage politics
9. Over US$ 22 Trillion of Bond yields assets across the World are in Negative ( The highest ever ) -- a Slow moving disaster .
The problem is that the World Economy is so much uncertain and its slowing down such that USD is now the Safe currency and thats creating the buying for USD making the King Dollar stronger. The Bond Yield inversion ( 10yr - 2Yr ) or (10Yr - 3M) are starting to signal a technical recession is coming in the US in the next 18 months.
The King Dollar will breakdown as long as the Markets feel that US-China Trade War ( Trumps Trade Wars ) are contained and not spreading like wild fire otherwise you might as well back up the truck and buy a boat load of everything else that is not the Dollar or Yuan
Comment:
NOTE: we tested the 98.37 Major resistance Area and then backed off . The King Dollar needs to break this area in order to open the upside move for USD ( EURUSD will fall further in that case) towards 98.82 . Otherwise as per the technicals if it totally fails then we will test the support at 97.30 to 97.01 region and see if it holds
Comment:
It seems we might test 98.82 area (Previous Daily high ) on USD if the USD strength continues