The US Dollar Index looks poised to continue its downward trajectory in 2021 and Asset Price Inflation will only continue - as long as DXY keeps dropping I will remain long equities, crypto, commodities, etc.
Technical Analysis:
In March 2021 DXY retested the bottom of the rising channel it broke out of last year and rejected, reversing back down as expected. More recently DXY has broken the 2021 support line, printing a bearish engulfing candle, and at futures open looks poised to continue lower.
In my opinion we will revisit 2018 lows. Possibly even break below that level. DXY doesn't fall out of a multi-year rising channel only to print a reversal.
88.25 test incoming.
Fundamental Analysis:
It will be a while before we see a bullish US Dollar given the amount of printing that has happened in the last year. Almost 25% of all US Dollars in circulation were created in 2020 - source: mishtalk.com/economi...ted-in-the-last-year
In recent weeks inflation worries amongst investors have hit the bond markets, with (brief) stonk sell-offs as yields spike higher. Both the Federal Reserve and Yellen (secretary of the treasury) have acknowledged rising inflation will manifest itself in the years ahead. www.nytimes.com/2021...ellen-inflation.html
Many investors & consumers fear an increase in Consumer Price Inflation (CPE) will manifest itself through higher prices of goods/services - however over the past year we have already experienced rising inflation due to the unprecedented amounts of printing not only by the US FED, but equally the ECB, BoE, etc, in the form of Asset Price Inflation (i.e. rising stock valuations, commodity prices, rising speculative investment in cryptocurrencies, etc) - www.investopedia.com...-economic-growth.asp
Continue to sell your US Dollars and buy hard assets.
Daily view:
Monthly view:
Technical Analysis:
In March 2021 DXY retested the bottom of the rising channel it broke out of last year and rejected, reversing back down as expected. More recently DXY has broken the 2021 support line, printing a bearish engulfing candle, and at futures open looks poised to continue lower.
In my opinion we will revisit 2018 lows. Possibly even break below that level. DXY doesn't fall out of a multi-year rising channel only to print a reversal.
88.25 test incoming.
Fundamental Analysis:
It will be a while before we see a bullish US Dollar given the amount of printing that has happened in the last year. Almost 25% of all US Dollars in circulation were created in 2020 - source: mishtalk.com/economi...ted-in-the-last-year
In recent weeks inflation worries amongst investors have hit the bond markets, with (brief) stonk sell-offs as yields spike higher. Both the Federal Reserve and Yellen (secretary of the treasury) have acknowledged rising inflation will manifest itself in the years ahead. www.nytimes.com/2021...ellen-inflation.html
Many investors & consumers fear an increase in Consumer Price Inflation (CPE) will manifest itself through higher prices of goods/services - however over the past year we have already experienced rising inflation due to the unprecedented amounts of printing not only by the US FED, but equally the ECB, BoE, etc, in the form of Asset Price Inflation (i.e. rising stock valuations, commodity prices, rising speculative investment in cryptocurrencies, etc) - www.investopedia.com...-economic-growth.asp
Continue to sell your US Dollars and buy hard assets.
Daily view:
Monthly view:
