I sense that everyone is bearish the dollar due to the Fed actions. As you know, I am firmly in the dollar bull camp.
This chart helps explain my view - the dollar is cyclical and as the ISM falls to 35 or lower, the dollar should rally hard (+18%) (Dollar inverted here)
This chart helps explain my view - the dollar is cyclical and as the ISM falls to 35 or lower, the dollar should rally hard (+18%) (Dollar inverted here)
Why do I think 35 for the ISM? It's basically what the weekly ECRI is telling us...
And that would suggest that the triangle pattern in the Euro could lead to a powerful down move...
And that in turn would break the massive Euro trend line...
And the ADXY Index of Asian currencies would continue lower in the worlds largest head and shoulders top pattern...
And the JPM EM FX Index would again keep making new lows...
I think the market's narrative of QE = lower dollar will prove to be a false narrative as the economic fundamentals, dollar debt dynamics and negative trade flows will force the dollar ever higher.
I think the Euro should be the first tell...
I think the Euro should be the first tell...
