DXY to the Moon {part 2}
מעודכן
When we are talking about big important swings, I am extremely bullish on the USD. Have been since 2021.
First targets for USD rally hit in 2022.
And then the big follow through 10% pop hit.
This took me to my big exit point where I got out of USD longs and said we should look for a 10% drop.
That hit.
After that the ideal thing for a USD bull would be the drop back to the low and the holding of the double bottom.
That drop hit and we currently hold the double bottom.
I believe we might be about to enter into a bubble in the DXY. Where major currencies and assets crash against it.
I believe this has been building up for a long time. The USD was in a strong downtrend for 30 years but 14 years ago this downtrend failed. There was a new low but not a big extension and we've probably rallied more than the retracement in a downtrend would expect.
This can mean we're either setting up a DXY reversal or at least a mean reversion of the USD crash.
In either event, we'd be on the cusp of one of the most spectacular Forex trends of our lifetime.
This is a really great spot to position for this because our bet here would be the low is in. Which means our stop can be just under the low.
If this can hold the double bottom and then break above the recent rally high - I think we're going to see DXY really boom.
The dollar is spoken ill of often and this might lead to believe it's weak in the Forex markets. Not true. It's been the strongest currency there for a while. The DXY rally in 2021 into 2022 was risk adjusted probably the best trade you could have made (Outside of outlier moves in energy).
Fed have hiked their rates to 5.5%. Up 2,000% from the low. In theory, there should be no better time to be a USD bull than now.
I'm taking my early positioning here and if we make that breakout I'm going to be hitting every bull setup I see.
Really have no trouble seeing the DXY at 140 we can indeed make the break of the 30 year downtrend.
I believe the USD is greatly underestimated. It could have spent 14 years building up to this point where there's optimal fundies and techs for it to go into overperformance.
First targets for USD rally hit in 2022.
And then the big follow through 10% pop hit.
This took me to my big exit point where I got out of USD longs and said we should look for a 10% drop.
That hit.
After that the ideal thing for a USD bull would be the drop back to the low and the holding of the double bottom.
That drop hit and we currently hold the double bottom.
I believe we might be about to enter into a bubble in the DXY. Where major currencies and assets crash against it.
I believe this has been building up for a long time. The USD was in a strong downtrend for 30 years but 14 years ago this downtrend failed. There was a new low but not a big extension and we've probably rallied more than the retracement in a downtrend would expect.
This can mean we're either setting up a DXY reversal or at least a mean reversion of the USD crash.
In either event, we'd be on the cusp of one of the most spectacular Forex trends of our lifetime.
This is a really great spot to position for this because our bet here would be the low is in. Which means our stop can be just under the low.
If this can hold the double bottom and then break above the recent rally high - I think we're going to see DXY really boom.
The dollar is spoken ill of often and this might lead to believe it's weak in the Forex markets. Not true. It's been the strongest currency there for a while. The DXY rally in 2021 into 2022 was risk adjusted probably the best trade you could have made (Outside of outlier moves in energy).
Fed have hiked their rates to 5.5%. Up 2,000% from the low. In theory, there should be no better time to be a USD bull than now.
I'm taking my early positioning here and if we make that breakout I'm going to be hitting every bull setup I see.
Really have no trouble seeing the DXY at 140 we can indeed make the break of the 30 year downtrend.
I believe the USD is greatly underestimated. It could have spent 14 years building up to this point where there's optimal fundies and techs for it to go into overperformance.
הערה
Here's a gold analysis that goes hand in hand with this. 
הערה
Complimenting USDJPY analysis. 
כתב ויתור
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