Friday, July 24, 2020

King Dollar About To Crash? Long-Term Support Test In Play!!!

About to? It's trading with a 94-handle on the dollar index futures!
From Kimble Charting Solutions, July 23:
Is King Dollar about to fall off the table and experience a large decline? An important long-term support test is in play right now!

The U.S. Dollar has created a series of higher lows for the past 9-year years along line (1). These higher lows reflect that King Dollar is still in a long-term bull trend.
The Dollar may have created a double top at its 61% Fibonacci retracement level of the 2001 highs/2008 lows at (2)....

I probably shouldn't even post this link, nine years is an awfully long time in the FX world as to be almost useless.
But Mr. Kimble draws such nice charts that even if one ignores the trendline there is a lot of information to be gleaned.
And if the U.S. still manufactured stuff (kidding) the currency weakness could be quite a competitive advantage. At the moment it's just making imports more expensive though.

As noted June 4:
The Dollar Continues Its Stately Decline  
Umm, did someone sign a Plaza Accord II while I was napping?