DXY and the opportunity cost!
-A few weeks ago I expected the DXY index to test the 92K region, as I believe this place is a major watershed.
In another previous analysis, I mentioned that we could see a strong appreciation of the DXY before the world, thanks to the inflation factor, as inflation would not give peace for a long time due to the “bullwhip effects”.
-It is worth remembering that the world changes, things evolve or stop evolving at a given moment, therefore, any and all forecasts must be reviewed.
-We also had in previous weeks the FED trying to impose a less aggressive tone, and this contributed to the American currency weakening before the world.
-With this period of a more dovish FED passing, we have now seen that the FED wants to control inflation more closely, therefore it has passed on to the market that it would adopt a more aggressive tone, in other words, hawkish, scaring away emerging market investors looking for “protection” in American bonds.
-It seems to me that world-class “economists” have not yet realized that controlling “administered prices” (oil and energy) will not generate results for a long time, and the bill will always come with more force than the force put in place to control it.
Let's go graph
At the moment we had the DXY being pushed hard by the bulls, and all this thanks to help from the FED.
-Many want to earn “extra” income without many risks in the coming months. The 100K region seems to me to be a psychological point of support for DXY.
-After we saw the index touch bottom, the medium-term chart showed the possibility of an upward pivot that materialized. This upward pivot reached the “Golden Double” region. The 107.1K region is a place of strong resistance.
-When reaching the “Golden Double” we have two possibilities for correction.
First: correction to the 103.7K region. This correction I consider as a strong momentum correction.
Second: correction up to the 101.9K region. I consider this correction to be a weak momentum correction, which could result in the index not gaining strength over the next few weeks!
-On the short-term chart we can have the index testing the 103.7K region, as shown in the image below, because despite having a good interest rate relationship with American bonds, we also have excellent companies to be purchased in emerging markets, which can give more space for the correction to happen.
Maybe this is the real reason why the US is not currently worried about the OPEC+ cartel!
In this analysis I mentioned the support points for the SPX index. And these points are being respected!
Who will save the economy?
-Do your analysis and good business.
-Be aware, if you buy, use stop loss!
-See other graphic analyzes below
In another previous analysis, I mentioned that we could see a strong appreciation of the DXY before the world, thanks to the inflation factor, as inflation would not give peace for a long time due to the “bullwhip effects”.
-It is worth remembering that the world changes, things evolve or stop evolving at a given moment, therefore, any and all forecasts must be reviewed.
-We also had in previous weeks the FED trying to impose a less aggressive tone, and this contributed to the American currency weakening before the world.
-With this period of a more dovish FED passing, we have now seen that the FED wants to control inflation more closely, therefore it has passed on to the market that it would adopt a more aggressive tone, in other words, hawkish, scaring away emerging market investors looking for “protection” in American bonds.
-It seems to me that world-class “economists” have not yet realized that controlling “administered prices” (oil and energy) will not generate results for a long time, and the bill will always come with more force than the force put in place to control it.
Let's go graph
At the moment we had the DXY being pushed hard by the bulls, and all this thanks to help from the FED.
-Many want to earn “extra” income without many risks in the coming months. The 100K region seems to me to be a psychological point of support for DXY.
-After we saw the index touch bottom, the medium-term chart showed the possibility of an upward pivot that materialized. This upward pivot reached the “Golden Double” region. The 107.1K region is a place of strong resistance.
-When reaching the “Golden Double” we have two possibilities for correction.
First: correction to the 103.7K region. This correction I consider as a strong momentum correction.
Second: correction up to the 101.9K region. I consider this correction to be a weak momentum correction, which could result in the index not gaining strength over the next few weeks!
-On the short-term chart we can have the index testing the 103.7K region, as shown in the image below, because despite having a good interest rate relationship with American bonds, we also have excellent companies to be purchased in emerging markets, which can give more space for the correction to happen.
Maybe this is the real reason why the US is not currently worried about the OPEC+ cartel!
In this analysis I mentioned the support points for the SPX index. And these points are being respected!
Who will save the economy?
-Do your analysis and good business.
-Be aware, if you buy, use stop loss!
-See other graphic analyzes below
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