Loading ...Dollar Decay
Notice how DXY broke out on the linear chart where the upper downtrend channel resistance was broken, forming an apex with the declining resistance from the 1984 high.
Notice how DXY apex on the linear chart with the 1984 declining resistance, turned support now forms an apex in 2024.
Next, look at the log chart – the upper downtrend channel line also forms an apex with the declining resistance turned support from 1984. In 2024.
Why 2024 ? It’s simple – that’s the next cyclical low…
Could this pattern be blown out of the water ? Could the dollar soar, despite declining global significance ? Could it break out to 100, 120, 150 ? Anything is possible I suppose, but it’s just not how I’m reading the charts. With huge interest payments on 22 trillion debt, and one of the worlds worst debt to GDP ratios, things don’t look good for the Fed. Stock markets (in my view) are on the verge of a 50% correction, maybe more, at a time when it’s becoming clear that the FED has very little firepower left. This hiking cycle has maxed out (or is very close) at a pathetically low level. Leaving limited room to react in a crisis. Gold and the miners could collapse further, but after a protracted bear market and (apparent) basing process, I think we’re positioned for a PM bull market. In 6 to 12 months time I could be eating my words, and I’ll be the first to admit I read it wrong. It’s all open to personal interpretation and bias. Good luck to everyone on this forum – I hope we’re all able to benefit from the shared knowledge on here 😉