Why the USD is about to rally... See chart below please.
Updated
https://www.tradingview.com/x/3cwvh7zP/
I would not necessarily listen to certain You-Tubers who write-off important momentum indicators like Stochastics & RSI.
My observations of both is that they are wonderful at telling me what is overbought & oversold. When a commodity, currency or stock is in either of these phases, massive & fast swings in price can occur as price comes out of the overbought (shorting) and oversold (buying) conditions.
The timeframe of the Stochastic and RSI which I've noticed has the most power and punch with respect to the above is the Weekly but sometimes the Weekly & Daily & 4HR RSI/Stochastics cross-up (x-up on 30/20 respectively) on their zones (buy) or cross-down (x-down 70/80 respectively) on their zones (short-sell). You really need to see the indicators tick-up (buy) or tick-down (sell) firmly through their respective zones (RSI 30/70) STOCH 20/80).
The following chart is the Weekly for the USDX. The RSI looks to be really getting under price & packing a big momentum-punch upwards soon. Plus the Stochastics Weekly is looking to cross up on its 20 zone at the same time. When they cross-up and if the Daily simultaneously crosses up it will provide a lot of upward price movement in USD and its index USDX.
I have been saying for about a week now that a rally is coming for the USD. This chart is the confirmation.
I would not necessarily listen to certain You-Tubers who write-off important momentum indicators like Stochastics & RSI.
My observations of both is that they are wonderful at telling me what is overbought & oversold. When a commodity, currency or stock is in either of these phases, massive & fast swings in price can occur as price comes out of the overbought (shorting) and oversold (buying) conditions.
The timeframe of the Stochastic and RSI which I've noticed has the most power and punch with respect to the above is the Weekly but sometimes the Weekly & Daily & 4HR RSI/Stochastics cross-up (x-up on 30/20 respectively) on their zones (buy) or cross-down (x-down 70/80 respectively) on their zones (short-sell). You really need to see the indicators tick-up (buy) or tick-down (sell) firmly through their respective zones (RSI 30/70) STOCH 20/80).
The following chart is the Weekly for the USDX. The RSI looks to be really getting under price & packing a big momentum-punch upwards soon. Plus the Stochastics Weekly is looking to cross up on its 20 zone at the same time. When they cross-up and if the Daily simultaneously crosses up it will provide a lot of upward price movement in USD and its index USDX.
I have been saying for about a week now that a rally is coming for the USD. This chart is the confirmation.
Note
* Take a close look at the chart for previous sell & buy areas of the chart. It's not b.s. trust me on this.
Chris
Note
The weekly RSI / Stochastic moves very slow. I think early or mid next week when the real rally begins in the USD as the price will jump 101.50Note
Yesterday Thursday the dollar really jumped at 4am NY time. I see where there could be another jump in price coming in at a similar time today. IE. The next 30minutes - 1hour.
* Seeing these overbought & oversold areas is easy with referencing old written charts. But seeing these levels in real time is more challenging. This is an hourly chart & I've marked buy & sell areas.
Note
So the 4HR Stochastic is dominating right now. Why? Because it is a highertimeframe than the 1HR plus the 4HR has already cross down on the 80 sell zone. Right now the 1HR stochastic is in the Oversold & is trying to its hardest to X-up on 20 but the 4HR sell signal predominates. Which is why the USD has dropped the last little while and the gold price is rising.Note
Trade active
I am scaling into Short Gold the past 5 minutes. Weekly usdx stochastic might x up soon but the weekly Rsi already has.Note
About to break out the USDX
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Current RSI also fueling the rally
Note
They are both weekly statsTrade active
Careful Going Long In Gold
USDX breaks out over 101.50 recently
Note
Weekly USDX Stochastic Crosses up Igniting the usdx rally. Gold retreats.
Note
So at the opening of Friday NY there was a lot of Gold selling going into the open and just beyond the opening bell & as the USD drifted just under 101.50 buying started to occur into gold as traders realised 'life goes on with a rallying dollar'Note
Any sustained and substantial rally above 101.50 of the usdx and Gold will sell off again.Note
Consumer sentiment up a little.
Main takeaway is that inflation number was good for gold.
USDX seems to have settled. People will be buying the gold price very soon I think.
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