Loading ...The Dollar Is Unhealthy
Beneath the surface, all is not well. The indicators are all fading, and have been for a long time now…
So the Index is rising and the indicators are showing declining strength and momentum. So what ? why should that matter ? Let’s have a look at the last cyclical Dollar top in 2001/2002…
Negative divergence is an early warning. Put this together with CHF/USD chart arriving at its cyclical low right on the very long term support line, Gold/Silver ratio chart at a rare level of over 85 and the upcoming completion of the ‘gold bowl’ basing pattern. What do you see as the most likely outcome ?
Hey NS. Great stuff. Do you feel that the Euro is in the exact opposite situation? I suppose that would act as a kind of additional confirmation of the dollar’s decline as the Euro makes up over 50% of the dollar index. Thanks.
Forgot to say that I’m asking primarily because I recently sold dollars and bought Euros, and not because I feel that the dollar index must fall in order for gold to rise in dollars.
Yes Nortstar – also curious on your bullish take on the Euro.
Hi CT. There are signs the tide is turning for Euro/Dollar. See my new post.
Good charts. Thanks.
“The indicators are all fading, and have been for a long time now”
Well, I guess I use different ones. Like price, for starters.
Up 11 months out of last 14. And off my indicators, likely headed for 2-3 more, at very least.
Of course, its probably pointing to even more dismal conditions in Europe and elsewhere.
After all, who is running at zero or negative yields ??
Yep. Dollar will be hitting fresh new 52 week highs probably next week. That doesn’t sound unhealthy to me.