Hello everyone! When I create a trading strategy, I start analyzing the U.S. DOLLAR at the largest time frame. This is the first part of the DOLLAR ANALYSIS trilogy.
This won't be a long post. Because the pattern formation on the MONTHLY chart of the U.S. Dollar is very clear and doesn't leave for much to say. A very large HEAD AND SHOULDERS pattern formation has been completed recently and we saw a break down in the dollar to the downside. Considering the size of the pattern and the time frame, I believe that we are going to see DXY around 80 in the next year or two. It is also inline with the plans of the U.S. Government wanting a weaker dollar. They definitely do whatever they can to achieve that. Because the U.S. benefits from the weaker dollar in international trade. Moreover, considering the desire to bring manufacturing jobs back to the U.S in order to create more jobs for Americans, weaker U.S. dollar is very essential.
So far so good, but how about the strengthening dollar in the past two weeks? I'll talk about it in the second part of the trilogy.
Have a great week!
This won't be a long post. Because the pattern formation on the MONTHLY chart of the U.S. Dollar is very clear and doesn't leave for much to say. A very large HEAD AND SHOULDERS pattern formation has been completed recently and we saw a break down in the dollar to the downside. Considering the size of the pattern and the time frame, I believe that we are going to see DXY around 80 in the next year or two. It is also inline with the plans of the U.S. Government wanting a weaker dollar. They definitely do whatever they can to achieve that. Because the U.S. benefits from the weaker dollar in international trade. Moreover, considering the desire to bring manufacturing jobs back to the U.S in order to create more jobs for Americans, weaker U.S. dollar is very essential.
So far so good, but how about the strengthening dollar in the past two weeks? I'll talk about it in the second part of the trilogy.
Have a great week!