The US Dollar Index recoils from short-term resistance
NFTRH 851 discussed the US dollar index and Gold/Silver ratio (GSR) in the final segment of a somewhat abbreviated report (as patient Gary recovers from surgery we’ll abbreviate a bit and maybe have less public posting):
Let’s end with a look at the two would-be liquidity killers for broad markets, USD and the Gold/Silver ratio (GSR). If silver’s pullback shown above ends at the logical support area we may see a breakdown in the GSR. That would be beneficial to the gold and silver miners as well as other commodity areas and global markets. In large part because it would be a negative indicator for USD, the would-be global liquidity receiver in times of stress.
Here I find it interesting to think about the near universal global support expressed for Mr. Zelensky in the wake of that White House shit show. For example, does something like that accelerate an anti-USD/BRICS (and now maybe Europe) “dedollarization” story? Maybe, maybe not. As usual, the technicals will tell the story, and as of Friday’s close USD has held base breakout support and is biased bullish (as is the GSR).
That means that a global macro caution signal is still viable. If USD breaks down and so does the GSR, we’ll go asset market party time.
USD still holds breakout support, but failed at a clear short-term resistance level. Is it a knee-jerk reaction of some kind to said White House/media shit show, prompting a revitalization of the “dedollarization” brigade? Trump’s pumping of Crypto? Both? Neither? We’ll find out soon.
The Gold/Silver ratio is pulling back too, but still postured to a bullish bias.
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