Return of the King (Dollar) 9/24/2020
DXY at the daily view.
Lord of the Ring reference. I'm a bit late to post this, but I've been dealing with personal issues lately.
The dollar rallied like no tomorrow which should not be a surprise. All it took was just a catalyst to get the dollar rally going.
1) There was a bullish RSI divergence all throughout August.
2) There was a solid RSI uptrend in the dollar strength.
3) An inverted head and shoulders pattern formed and finally broke the neckline.
4) The catalyst of all of this bullish evidence was when Jerome Powell said that he needed a new stimulus bill to keep the markets going.
Will this rally keep going? Unless a new stimulus bill is passed, the dollar rally is here to stay for the election cycle. That would severely delay the silver and gold rallies. In addition, NQ would not like the dollar sustaining its rally as well. If the dollar keeps the rally, then equity will have a sustained downtrend.
Lord of the Ring reference. I'm a bit late to post this, but I've been dealing with personal issues lately.
The dollar rallied like no tomorrow which should not be a surprise. All it took was just a catalyst to get the dollar rally going.
1) There was a bullish RSI divergence all throughout August.
2) There was a solid RSI uptrend in the dollar strength.
3) An inverted head and shoulders pattern formed and finally broke the neckline.
4) The catalyst of all of this bullish evidence was when Jerome Powell said that he needed a new stimulus bill to keep the markets going.
Will this rally keep going? Unless a new stimulus bill is passed, the dollar rally is here to stay for the election cycle. That would severely delay the silver and gold rallies. In addition, NQ would not like the dollar sustaining its rally as well. If the dollar keeps the rally, then equity will have a sustained downtrend.