Goldtent TA Paradise

US Dollar : Everybody is Wrong ?

1. Cervantes says:

   March 10, 2016 - 1:19 pm at 1:19 pm

   Hello, I posted yesterday another post of this Venezuelan guy. https://acardenasfx.com/2016/02/25/swellindex-del-dolar-americano-dxy-al-24022016/ They created the “swell” index. Look what they found the 24 february… It shows an important divergence.

   He say this swell index, in the DXY is created based in Macro data.

   And well… It works in WTI, Brent, and also the DXY…

   (and here WTI at 8/3/16 https://acardenasfx.com/2016/03/09/lo-peor-ya-paso-con-el-petroleo-o-estamos-en-el-ojo-del-huracan-wti/ )

2. DaveintheUK says:

   March 11, 2016 - 3:51 pm at 3:51 pm

   Rambus says in that article:

   “Note that massive rally the US dollar had that started in the middle of 2014 and ended in the first part of 2015. While the US dollar was rallying in a near vertical move , gold just kept on chopping out the blue falling wedge, which in hindsight now, we can see was a positive divergence for gold to the US dollar.”

   It is interesting that in his sixth and final chart, this movement in gold is well seen. In fact gold had two almost identical cycles throughout 2014 and 2015, one between his gold points 3-4-5 where the dollar was falling slowly and then started to breakout – and another almost the same gold pattern between 5-6-nearly-to-7 where the dollar (USDX) skyrocketed 25% from 80 to 100 and then fell back a bit to the mid-90s. I wonder what the correlation coefficient was over that period between the US dollar and gold? Near to zero?

   In the same way, there is nothing clear in the recent action of the dollar that points in any way to gold’s early 2016 rally.

   In fact there seems to be very little correlation negative or positive between these longer term moves in gold and the USDX over the past 9 years shown on that chart!