Possible Higher UUP / USD Prices Ahead
It’s been a while since I’ve posted here. After reading Gary’s “Starting To Doubt An Imminent Dollar Crash” posted below, I would like to add the following.
The following is a very simple UUP chart showing a 5 year 4 point expanding wedge. For perspective purposes, the top pattern is a bar version stacked on top of a solid line version below. The possible significance of this combination chart is the possible 4 point purple wedge and how it fits into the bigger picture of UUP’s 5 year wedge. Note how the possible 4 point purple wedge sets just below the top rail of the larger 5 year expanding wedge shown on the bar chart, like a snake coiling for a strike. Also note how the possible 4 point purple wedge sits right above the top rail of the solid line version of the 5 year expanding wedge. The contracted volume is suggesting change within itself.
It remains to be seen if the possible 4 point purple wedge actually completes itself with a break above its own top rail. The fact that the purple formation is sitting where it is sitting in relation to the top rails of both the 5 year bar and solid line patterns is potentially significant. From what I believe I’ve quietly learned from Mr Rambus, this combination holds the possibility for much higher UUP / USD prices from a Chartology perspective.
Because I continue working on maintaining an open mind, the red dashed line was added to the bar pattern for consideration purposes representing the possibility of a H&S pattern to the down side.
The following is a UUP 2 hour chart showing a closer view of a bar and a solid line version of the possible 4 point purple wedge mentioned above.
Considering both Gold and UUP / USD have generally risen together since August 2018, this post is NOT suggesting that Gold will head lower in the event that UUP continues to head higher. I personally believe there is a strong possibility that both Gold and UUP / USD could continue to generally head higher together.
Disclosure; my days of being stuck in the mindset that the USD is ONLY heading lower are over. As a result, I practice maintaining a BullBear mindset simply because I work on looking both ways, (with an open mind). With that, I am invested in the PM space and am of the opinion that metals are generally heading higher.
Regards
Hi Optional. Missed your inputs, and great to read your post. I hope you’re well. I agree this is a possibility. I rate it as a lower chance than a rapidly dropping Dollar until it moves above the arc I’ve been drawing. A cyclical low lies ahead. Looking both ways, and maintaining a neutral bias is however the best approach by far.
Hi Northstar. Thanks for your comments. I hope all is well with you as well. I just reviewed your Jan 5th (US Dollar In Downtrend) post and can see your reasoning. I do have one more potentially significant USD perspective I will be posting for consideration purposes when time permits. Thanks again for your comment.
Hi Optional! Nice read, thanks!
Hi Patrick. Thank you, I appreciate the compliment.
Martin Armstrong is suggesting that the USD should rise at the ECM turning point (18th January) and continue higher into 2022. He says that although gold could retrace it should end up rallying with the USD.
Thanks Dickus. Appreciate you sharing Armstrong’s perspectives. I have a good friend who has developed a fascinating and very unique cycle analysis system that is very much in line with Armstrong’s dates and views. Thanks again for your comment.
Welcome back Optional
I’ve been a closet Dollar bull for a while …so these charts are helpful
BUT personally I am expecting more drift for as far as the eye can see.
ie Not too hot …not too cold…all currencies just drift lower Together vs Gold
as they have been doing
cheers
Fully
Yes. Its hard for the dollar to fall when the euro is such crap… like you say… sheesh
Thanks Fully. A drift within a general trading is always a possibility. What ever the outcome may be, I will side step denial and be among the first to accept what ever picture the candles may print.
That is one of the most difficult steps to take in this journey towards good trading.
It takes years and lots of “lessons”
I still have not mastered it but am much better than when I started
Rambus has been a huge influence in that regard.
I know no other trader who can turn on a dime when the charts turn unexpectedly .like he can.
Good stuff Optional.
Onward Pilgrims ( Winedoc)
Nice charts and write up. Thanks
Your welcome Gary. Thank you for your post.