TECH BULL FRACTALLook at the chart.
DTWEXM was used to clean up movements a bit by taking into account the relative strength of the dollar using the trade weighted us dollar index.
DTWEXM
#DXY VS #DTWEXM [1WC] Will DXY fallow and FALL?!INDEX:DXY
FRED:DTWEXM
Here is an interesting difference between #DXY "The Typical most used USD Index" and #DTWEXM "The Trade Weighted USD Index" that is believed to be more accurate than DXY.
The 2 pairs have been identically moving together but now we experience an initiative fall on DTWEXM to break the channel.
Is this telling us something about the future DXY move?
16FEB18 - DXYDXY broke down historical bearish trendline, the cycles indicate, DXY might further lose value.
Trade weighted dollar index: UpdateThe long term uptrend signal I was looking at has triggered here, so I think we can get higher prices in the long term, although I see a very possible retrace in the dollar coming here, but only briefly. If anything it's an opportunity to reenter long term dollar longs.
Invalidation of this thesis would come if there is a big fundamental change that causes price to drop under 90.50.
Good luck,
Ivan Labrie.
