The US dollar index (DXY) is still in consolidation
Along with other indicator related considerations like the Gold/Silver ratio (GSR), the US dollar index (DXY) is likely to inform the macro in a big way when it finally breaks consolidation from its higher high point. That higher high is, by the way, a scout for future bull activity, regardless of whether the next significant move is down or up.
We identified a wedge/bull flag last week (green dotted line), which then broke out. I added an upper channel line parallel to the lower one to denote a larger channel, which could a) breakout to bullish (as it tried to do yesterday before being reversed this morning), b) contain the price for a while before an eventual upside breakout, or c) guide Uncle Buck downward to support and the 200 day moving average in the 104 area.
Option ‘c’ would match the ‘broad asset market rally into 2025’ theme. An impulsive turn to bullish by the buck would match the ‘get the hell out of the pool, there’s a turd in there!’ theme. Given the season, you can swap in punch bowl for pool, if you like. Same turd, though. People should be watching for the USD and GSR combo, among other things for near-term signals.
For “best of breed” top down analysis of all major markets, subscribe to NFTRH Premium, which includes an in-depth weekly market report, detailed market updates and NFTRH+ dynamic updates and chart/trade setup ideas. You can easily subscribe by Credit Card or PayPal (see all info and options). Keep up to date with actionable public content at NFTRH.com by using the email form on the right sidebar, or take it to another (intermediate) level with our free eLetter. Follow via Twitter@NFTRHgt.
