On the weekly chart we see a couple of similarities in price action and formation.
Currently DXY is bottoming at its support.
Notice a couple of things:
-Timestamps on both periods in bottoming and price formation.
-Exact same bottoming progress in a blow of top, a seloff a bounce and a consolidation around high timeframe support
What indicates this?
-A dollar pump would be bad for asset prices, crypto and gold.
-If this patterns follows 2018, as it already did we will likely see a March equity seloff based on timestamp and price formation.
HOWEVER: Fundamentals are different comparing to 2018 with mass stimulus and low interest rates. Normally if dollar loses this support, we will be safe and equities will soar again. If this range holds for a long time, it is best to derisk equities around late february, before the hedgefunds spot this.
To be continued.
Currently DXY is bottoming at its support.
Notice a couple of things:
-Timestamps on both periods in bottoming and price formation.
-Exact same bottoming progress in a blow of top, a seloff a bounce and a consolidation around high timeframe support
What indicates this?
-A dollar pump would be bad for asset prices, crypto and gold.
-If this patterns follows 2018, as it already did we will likely see a March equity seloff based on timestamp and price formation.
HOWEVER: Fundamentals are different comparing to 2018 with mass stimulus and low interest rates. Normally if dollar loses this support, we will be safe and equities will soar again. If this range holds for a long time, it is best to derisk equities around late february, before the hedgefunds spot this.
To be continued.
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Clause de non-responsabilité
Les informations et publications ne sont pas destinées à être, et ne constituent pas, des conseils ou recommandations financiers, d'investissement, de trading ou autres fournis ou approuvés par TradingView. Pour en savoir plus, consultez les Conditions d'utilisation.