Where The USD is Heading & The Truth About China's Trade War!I know this may be a shock, but this long-term chart of the dollar suggests that the greenback may be setting up for massive gains in value, over the next 15 years or so. This chart is full of bullish formations. Let's start with the largest of the formations, which is the descending wedge (in black.) You can see that since these futures contracts went live in 1985, the dollar has been forming this massive descending wedge. That's nearly 35 years spent forming this pattern — amazing. In case you didn't know, descending wedges are bullish chart patterns, and the descending wedge here is enormous.
The next largest pattern is a massive cup and handle pattern (in blue.) So far, it is a textbook cup and handle pattern. You can see that price is inside of the handle right now, and could remain there for another year or two. What's even more interesting, is that the handle and the top of the falling wedge are converging in the same area. So, if price breaks out above the falling wedge, that will be a very bullish indication that the cup and handle could be setting up for a breakout as well. Now, if we look across the exact top of the cup and handle, we can see that it corresponds to a lateral resistance level at 104 (red dashes.) As you can see, that level has acted as major support and resistance in the past. So, assuming these bullish patterns break to the upside, we can expect powerful surges higher in response, since these levels have stood as resistance for so long.
The next pattern is the rising channel/wedge. I would say that this pattern is more of a channel than a wedge, but it is slightly closing toward the end. Regardless, it's rising to the upside, suggesting that price will continue to rise as it remains inside of that formation.
Assuming a breakout occurs from these patterns in the future, we can expect the USD to soar 40% or more in value. Obviously, that is contingent on a breakout, and the breakout hasn't occurred yet. A strong US dollar is good for US consumer purchasing power, but it isn't good for US companies who export products, or companies who conduct business overseas. So, it could have an overall positive effect, enticing companies to remain stateside.
However, some companies wouldn't have that option, if their business relies on foreign markets. This is why our response to China's trade war is critical. If the USD rises in the future, as this chart projects, we will need a stronger advantage in global trade, so that the US consumer can benefit while US companies are protected with trade renegotiations. Don't let the media lie to you, and tell you that America shouldn't be engaging China with tariffs. This isn't "Trump's Trade War," as the left would like you to believe. This is China's Trade War, which they started decades ago when Bill Clinton opened the doors. The only problem, is that no president has had the courage to respond, until President Trump took office. When America is under attack, we have an OBLIGATION to respond. The American economy has been under attack by China for decades. They've stolen our intellectual property to the tune of over $100 billion per year. They reverse engineer our products and sell billions in knock-offs in the global marketplace. They've polluted China and the world around them, by carelessly allowing companies to operate there without any regulatory costs or responsibilities, which enables companies to dump their waste products at random to save billions in regulatory costs that they would have otherwise paid in America. China artificially suppresses the value of its currency, so that it can take advantage of the US in trade expenses. Make no mistake about it, they've been executing a calculated attack on our nation for decades. When you go to the store, most products that you see are Made in China, and most of those products are made with toxic chemicals or otherwise do not meet US product quality standards. Yet, their products flood American markets, and every former president hasn't lifted a finger to stop it. Now that we actually have a president who understands the importance of this issue, and how dangerous it is for the future of America's national security, we have outrage from the leftists who wrongfully criticize Trump's response. I guess they would rather turn a blind eye, while the enemy quietly destroys us from the inside out. I am outraged and disgusted with Americans who don't have the courage to fight, when our country is under attack!
I'm The Master of The Charts, The Professor, The Legend, The King, and I go by the name of Magic! Au revoir.
***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***
-JD-
