We can see below the dollar 'T Theory' cycle suggesting we near done, and a period of change is due in the next 4 to 6 months. Notice how neatly the US dollar fits into even weekly time periods.
The recent US dollar strength had to happen as EVERY ONE was short the US dollar, as the short energy for hitting the ASK BUTTON just dried up, these past six weeks have set up a nice bounce to smash the US dollar ASK once again over the next 4 to 6 months.
MI2Partners posted this 20 year US Trade Weighted Index (TWI) model on twitter, here.
@MI2Partners In #macroeconomics, when you get the direction of the #USdollar right, the rest falls into place. Triffin’s Dilemma reminds us of the inconsistencies in domestic & international goals. The consequences for the #dollar will be profound
As you can see their forecast is for a new 20 year low in the TWI.
Of course this (or just half of the crash) would create a hyperinflation risk on rally, just like the DOW in 1929 or 1987, and just before US mid terms. Hmmm typical!
readtheticker.com US dollar model (below) suggest new lows for the DXY.
Main drivers are European banks are doing better (or less worse) compared to US banks, add on the comparison of core inflation between the US and Europe and lower DXY lows can be expected.
CRAZY has not even started yet!
Original Post: https://ift.tt/2QTVoQe
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