From a technical perspective, the price is currently retesting the lower weekly trendline that was broken in January 2021. Additionally, using the Elliott wave principle, it looks like we have finished 5 waves up for wave C which indicates that the big ABC upside correction may have come to an end and that it is time to see the Dollar continuing its way to the downside.
Also, the area in yellow must be taken into consideration as it is the top of wave (i) which according to the Elliott wave principle is considered a very critical area.
From a fundamental perspective, I've said it in 2020 and I'll say it again. I'm still long-term bearish on the Dollar and bullish on major currencies and precious metals as I think that the U.S. is heading towards a currency crisis because of their reckless monetary policy that will keep creating more and more inflation.
What caused the Dollar to go up for a correction is Jerome Powell talking about tapering asset purchases and claiming to use their tools in case inflation goes out of control; however, you should know that tapering doesn't mean fighting inflation. You don't put out a fire by throwing less gasoline on it! And even if the Fed higher rates in 2022 to 0.5% or even 1%, this will be nothing compared to inflation which may reach around 7 or 8% if not more.
U.S. towards a currency crisis? What do you think?
Also, the area in yellow must be taken into consideration as it is the top of wave (i) which according to the Elliott wave principle is considered a very critical area.
From a fundamental perspective, I've said it in 2020 and I'll say it again. I'm still long-term bearish on the Dollar and bullish on major currencies and precious metals as I think that the U.S. is heading towards a currency crisis because of their reckless monetary policy that will keep creating more and more inflation.
What caused the Dollar to go up for a correction is Jerome Powell talking about tapering asset purchases and claiming to use their tools in case inflation goes out of control; however, you should know that tapering doesn't mean fighting inflation. You don't put out a fire by throwing less gasoline on it! And even if the Fed higher rates in 2022 to 0.5% or even 1%, this will be nothing compared to inflation which may reach around 7 or 8% if not more.
U.S. towards a currency crisis? What do you think?
