Thread by @cassinicapital1

#Dollar Wrecking Ball Analysis

A short chart thread 🧵

#DXY #StockMarket #Stocks #CryptoNews #Cryptos #Crypto

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We are all aware that a strong relative #Dollar acts as a headwind for risk assets such as #Stocks and #Crypto. the dollar has ripped higher this year whilst risk assets have been annihilated. As the fed sucks dollars out of the system, the demand for dollars increase,

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further increasing the relative strength of the #dollar.

So now we understand the importance of a strong relative #dollar for #stocks and #Crypto, lets delve into the charts...

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Macro #DXY 1990- 2000s:

- Strong move characterised by 3 distinct phases:

1- Bottoming phase
2- Accumulation following first move up
3- Vertical blow off top

- All 3 phases largely contained in a parallel channel.

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Macro #dxy present day:

Resembles prior chart by showing:

1. Bottoming phase
2. Accumulation following move up
3. Vertical move higher
4. Contained in a parallel channel

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Currently the #DXY is reaching an inflection point:

- Golden ratio fib extension tagged today
- Top of the channel very close
- 2000s high not far away

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So will the channel and 1.618 hold as resistance?

Will the 2000s high hold as resistance?

How high can the #dollar go?

How long can the fed continue to tighten?

What does this mean for #stocks and #Crypto?

These are the questions traders and investors are pondering.

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I will update you all with more macro analysis as we progress, as it has huge ramifications for our portfolios.

Please like, share, comment and follow for more market insights.

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