• 23 hours Escalating Tensions Could Crush $52 Billion China-U.S. Energy Deal
  • 2 days The Fed Is Printing Money At Unprecedented Levels
  • 2 days How Is The Real Estate Market Handling COVID-19?
  • 2 days Gold Flat As Markets Await Fed Chair Speech
  • 2 days What Is Day Trading And Is It Right For You?
  • 2 days Energy CEOs See Big Payouts Despite Oil Price Crash
  • 2 days Saudi Arabia Is Fighting A War On Two Fronts
  • 2 days 40 Million Jobless As Pandemic Fuels Economic Collapse
  • 2 days What Do India's Latest Reforms Mean For Its Coal Industry?
  • 2 days Copper Glut Continues To Grow
  • 3 days How A Pandemic Made Americans Better Workers
  • 3 days The Trillion Dollar Space Race Crosses Another Milestone
  • 3 days Gold Prices Fall As Stock Market Sentiment Turns Positive
  • 4 days Conspiracy Theories Set Tone For 5G Cold War
  • 4 days Working From Home Will Transform The Energy Industry
  • 4 days The Multi-Billion Dollar Race For A Vaccine
  • 4 days Can Domestic Tourism Bolster Emerging Economies?
  • 4 days Australia Considers $100 Million Investment To Kickstart Mining Industry
  • 4 days Has Re-Opening The Economy Been Successful?
  • 4 days Gold Miners Still Have Massive Upside Potential
How The Ultra-Wealthy Are Using Art To Dodge Taxes

How The Ultra-Wealthy Are Using Art To Dodge Taxes

More freeports open around the…

Zombie Foreclosures On The Rise In The U.S.

Zombie Foreclosures On The Rise In The U.S.

During the quarter there were…

Another Retail Giant Bites The Dust

Another Retail Giant Bites The Dust

Forever 21 filed for Chapter…

Surf City

Surf City

Surf City

Surf City is 60-year-old retired Information Technology Executive and Software start-up Entrepreneur living near the beach in California. He has been an active investor and…

Contact Author

  1. Home
  2. Markets
  3. Other

US Dollar Inflection Point

This is the first of several updates this weekend and I thought I would start with the USD.

This update has four Charts on the USD starting with longer term charts and then moving in for a close up view on the current price action. My first chart is a long term 20 year weekly chart that shows the USD's breakout above the downtrend line from it's last top in 2001. This chart also shows the current uptrend channel out of the 2008 Low (Green and Orange lines).

Lastly this first chart also shows a steeper Blue uptrend from 2014. Some trend lines are clearly more important than others. Based on the number of touches over the past year, this Blue line is critical support for the USD's current move and is also shown on my next two shorter term charts. Based on my Cycle analysis, if and when this Blue uptrend breaks down, the USD will very likely have signaled its top within its longer 15 Year Super Cycle.

Chart 2 is a 3+ year chart that shows the same Blue uptrend along with a near horizontal Green line that may provide support for the USD prior to reaching the Blue line within this current downtrend.

Chart 3 is a nine month chart with the same Blue line. Note that we a within a whisker of a Failed Trading Cycle here but the USD is also showing signs of bottoming or basing just short of making a Lower Low here. My last chart shows the last several months of price action and why next week will be critical, IMO. It clearly shows the USD is at a short term inflection point. Either it is forming a double bottom from where it will bounce next week or it will break down and have a failed Trading Cycle. Based on Time, I would expect it to make a decision rather soon as we are either on day 35 or on day 2 of a new Trading Cycle should Wednesday's low on Day 33 prove to be a Trading Cycle Low.

US Dollar Index Weekly Chart

US Dollar Index Weekly Chart 2

US Dollar Index Daily Chart

US Dollar Index Daily Chart 2

 

Back to homepage

Leave a comment

Leave a comment