On the weekly chart, the DXY (U.S. Dollar Index) appears to be breaking out of a potentially strong bullish pattern known as a falling wedge. This week is crucial for DXY's performance for the rest of the year. If it closes the weak above the upper trend line of the falling wedge, it may indicate a significant breakout and potentially lead to a powerful and sustained upward movement.
Moreover, there are notable and robust positive divergences observed on both the RSI (Relative Strength Index) and MACD (Moving Average Convergence Divergence) indicators, suggesting that new bullish momentum could be on the horizon.
From a macroeconomic perspective, it is highly likely that the Federal Reserve (FED) will take measures to address inflation concerns and rising oil and gasoline prices, which experienced a sharp increase of more than 13% in July, representing the most significant surge in the past 18 months. These developments have added extra inflationary pressure.
Additionally, the changes in Japan's yield rate can also influence a stronger dollar, further supporting its potential upward movement.
In conclusion, if the DXY indeed breaks out this week, we should prepare for a substantial move in the dollar and possibly in yields as well. In such a scenario, cryptocurrencies and stocks might experience adverse effects and potentially suffer.
Moreover, there are notable and robust positive divergences observed on both the RSI (Relative Strength Index) and MACD (Moving Average Convergence Divergence) indicators, suggesting that new bullish momentum could be on the horizon.
From a macroeconomic perspective, it is highly likely that the Federal Reserve (FED) will take measures to address inflation concerns and rising oil and gasoline prices, which experienced a sharp increase of more than 13% in July, representing the most significant surge in the past 18 months. These developments have added extra inflationary pressure.
Additionally, the changes in Japan's yield rate can also influence a stronger dollar, further supporting its potential upward movement.
In conclusion, if the DXY indeed breaks out this week, we should prepare for a substantial move in the dollar and possibly in yields as well. In such a scenario, cryptocurrencies and stocks might experience adverse effects and potentially suffer.
Consistency is the key of success....
On the daily chart is a very similar situation when DXY is breaking out today. Will big boys try to stop DXY and the dollar to go 10% up or more and with that stop inflation for good but destroy the stock market and economy?