Loading ...Dollar Index – Watch The 98 Level
Meanwhile, gold is poised, waiting for the outcome of this (very) important test. Perhaps it makes very little difference – DXY rising towards point 3 on my chart above has made no difference to golds bullish move this year…
I think the fed meets in about 1 week. If, by chance, they don’t lower rates as everyone expects the dollar will take off and our PM positions will probably suffer. But they will lower rates, won’t they???
I wonder now if rates down or not, gold will go up regardless…
Nice charts! Very elegant and easy to view.
I note there is a slight contrast with Fully’s UUP chart in a recent post below this one showing a breakout gap.
Of course on the longer terem cvhart above, the parabola can probably be stretched a little more anyway and a m oderate upmove in the dollar soon could still be within your patterns above.
98 does look like a key level.
I note that the pound has been trending down lately (part of the USDX basket) and with the coronation of Boris Johnson as prime minister today it seems that the pound has not reacted much more to the downside today so maybe most of it is in the market with the pound already down at $1.24. It’s 10-12% of the dollar index denominator so it would take about a -8% move in the pound to put 1% on the USDX roughly.
Thanks Dave. Fiat devaluation continues at a steady pace, hence all the global gold price breakouts. I’m quite sure DXY will follow soon.
With respect NorthStar
DX doesn’t have to follow anything
DX is what everything is measured against
The DX can go uup ….and Gold needs to go UUP as well
There is no real sign of weakness in the Dx at the moment …au contraire
There is NO Gold Bull if Gold is “pegged to the dollar inversely.
My working thesis is the Currencies do not matter at this point…they all wanna be weaker and the masses are starting to figure it out
weaker against the real currency !
I hope against hope you’re right Fully. Right now, I’m scared to be long but afraid to be out of the PMs.
” I’m scared to be long but afraid to be short ”
This summarizes what we are axperience in one sentence!!! 🙂
I meant : afraid to be OUT
I agree Fully. All currencies are in a devaluation race against gold. You only have to look at the charts for 30 seconds to see that.
Great work NS and I agree with Dave that your charts are easy to read and make sense for a beginner chartist like me 🙂