All Roads Lead to a Stronger USD
We can conclude from the charts that..:
- Capital inflows to the USD are very strong in terms of momentum, and we haven’t reached the first layer of targets yet, based on longer-term channel work.
- This trend could last for several months at least, well entered into next year (Targets on monthly charts are pointing to July 2023).
- Right now there is no sign of a potential reversal, although retracements are to be accounted for and could be violent. We can infer this from the speed (the momentum) the market has exhibited since the summer of 2021, and the gaps it is leaving behind in the price structure.
- A pause in the trend will emerge when other assets start competing against the USD, namely US stocks, some commodities, and cryptocurrencies. We can see this already by looking at those markets priced in global terms, that is by indexing them in a basket of currencies. Their revival will surely take some wind off the dollar sails. But this is material for another episode.
If you are working as a technical analyst, editor, specialized translator, or a student of TA, consider visiting the site vocabTA.com, where you can find the largest phrase bank for Technical Analysis available on the Internet.
Full Disclaimer: This video and its contents are for informational purposes only and do not constitute an offer to sell or trade, a solicitation to buy, or a recommendation for any security, cryptocurrency, or related product, nor does it constitute an offer to provide investment advice or other related services by vocabTA. In preparing this video, no individual financial or investment needs of the viewer have been taken into account nor is any financial or investment advice being offered. Any views expressed in this video were prepared based upon the information available at the time such views were written. Changed or additional information could cause such views to change.
- Capital inflows to the USD are very strong in terms of momentum, and we haven’t reached the first layer of targets yet, based on longer-term channel work.
- This trend could last for several months at least, well entered into next year (Targets on monthly charts are pointing to July 2023).
- Right now there is no sign of a potential reversal, although retracements are to be accounted for and could be violent. We can infer this from the speed (the momentum) the market has exhibited since the summer of 2021, and the gaps it is leaving behind in the price structure.
- A pause in the trend will emerge when other assets start competing against the USD, namely US stocks, some commodities, and cryptocurrencies. We can see this already by looking at those markets priced in global terms, that is by indexing them in a basket of currencies. Their revival will surely take some wind off the dollar sails. But this is material for another episode.
If you are working as a technical analyst, editor, specialized translator, or a student of TA, consider visiting the site vocabTA.com, where you can find the largest phrase bank for Technical Analysis available on the Internet.
Full Disclaimer: This video and its contents are for informational purposes only and do not constitute an offer to sell or trade, a solicitation to buy, or a recommendation for any security, cryptocurrency, or related product, nor does it constitute an offer to provide investment advice or other related services by vocabTA. In preparing this video, no individual financial or investment needs of the viewer have been taken into account nor is any financial or investment advice being offered. Any views expressed in this video were prepared based upon the information available at the time such views were written. Changed or additional information could cause such views to change.
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