Is this it for DXY bull run?There are several fundamental views towards our 3 week DXY surge and its future. Here are my personal views that I deem logical regardless of the play out.
I have mentioned recently that these economic relief packages are a form of inflation hence why we see the likes of gold and cryptos surging during times of stimulus relief. While Gold is set for another week of gains we can look to for further DXY retreat. Although trillions of dollars are being sent out , on a grand level this money will be put right back into the economy through the likes of spending for leisure, bill pay, debt pay, investing, etc. As debt is paid off what do most people do? They either end right back in debt or establish positive capitol that naturally has a positive effect on the economy. Furthermore, the relief will have positive effect on other countries which historically lowers the dollar for sentiment purposes. We are seeing this all in play currently.
Its important to be able to correlate DXY fundamentals with chart patters. DXY is know to have major gaps. This current gap was in my opinion a final retest of the key resistance that bulls needed to breach for continuation fueled by Treasury yield manipulation. The trend exhausted well before 92.200. That being said to avoid a takeout 92.00 support must be breach with a close out to add sentiment to a sell off. Our MACD/SIGNAL lines are finding true indicator support as presented on chart while a MACD?SIGNAL line cross is in play. When this occurs the lines must cross the 0 line for indicator sentiment sell off.
Let me know what everyone thinks about DXY and compare your sentiment towards mine. There truly is little to go off from the web as there is clearly to much uncertainty from misleading articles. Let the community talk. Thank you!
