• 13 hours The Cannabis Culling Has Wall Street Disappointed
  • 19 hours Vigilante Offers $100,000 Bounty To Hack Banks
  • 2 days The Dairy Industry Is Dying
  • 2 days The Most Impressive Electric Vehicle Of The Year
  • 3 days Gold Miners Are Having A Stellar Second Half
  • 4 days How 3D Printing Is Turning Each And Every Industry On Its Head
  • 4 days Is The $3.5 Trillion Healthcare Industry About To Get Much More Transparent?
  • 5 days Gamblers Are Betting Big On Trump’s Impeachment
  • 5 days Even Banks Can't Answer Aramco's Trillion Dollar Question
  • 6 days Will Bezos Buy The Seattle Seahawks?
  • 6 days 6 Tech Trends Transforming The Travel Industry
  • 7 days Ousted Uber CEO Cashes Out $500 Million In Stock
  • 7 days Trump Prepares For Another Key Tariff Decision
  • 7 days The Free Money Bubble Is About To Burst
  • 8 days The Crushing Reality Of Poverty In America
  • 8 days Should You Buy Into The World’s Largest IPO?
  • 8 days The Infinite Possibilities Of Cosmic Energy
  • 9 days Analysts Link Walking To Economic Growth
  • 10 days Will Japan Turn Its Back On The Aramco IPO?
  • 11 days Global Debt Soars To $188 Trillion
Is The Bull Market On Its Last Legs?

Is The Bull Market On Its Last Legs?

This aging bull market may…

Another Retail Giant Bites The Dust

Another Retail Giant Bites The Dust

Forever 21 filed for Chapter…

Zombie Foreclosures On The Rise In The U.S.

Zombie Foreclosures On The Rise In The U.S.

During the quarter there were…

Ed Carlson

Ed Carlson

Ed Carlson, author of George Lindsay and the Art of Technical Analysis, and his new book, George Lindsay's An Aid to Timing is an independent…

Contact Author

  1. Home
  2. Markets
  3. Other

US Dollar: Bull Market

DXY fell 0.72% last week and closed at 98.01 (below the 13-dma) after printing an engulfing bearish candlestick on Friday. 14-day RSI was unable to stay above its 20-dma during the previous week's rally and 3-day RSI remains below 80; bearish. Not surprisingly, DXY looks similar to the pattern in TNX - the interest rate on the ten-year treasury.

The March/April (and now December) highs near 100 are pivotal. Any breakout from there will be very bullish. A break of the Dec low at 97.21 generates an initial price target of 96.65.

The breakout from a triangle on the weekly chart measures a minimum move to 103.00. This should be the fifth and final leg up of the bull market. A strengthening Dollar is deflationary and bearish for equities.

Cycles tell us that the rally should continue into a final high in the first quarter of 2016. DXY is expected to then begin a bear market which will last until the second half of 2017.

US Dollar Index 10-Year Chart
Larger Image

 


Click here to get your copy of the December Lindsay Report.

 

Back to homepage

Leave a comment

Leave a comment