DXY - Will History Repeat Itself
Today I was playing around with a chart of the US Dollar, trying to find past market behavior to the SPX and Gold.
On this weekly chart, I found that the DXY is in a upward price channel. I noticed that there is a double bottom similar to the one from 2008-2011, so I copied the bar pattern from that spot and added it to current price area.
I wanted to see how the SPX and Gold reacted to an increasing price in the DXY. The SPX had some slight fluctuations to the increases but not as much as I anticipated. Gold on the other hand was very susceptible to the DXY as anticipated.
It is interesting that the time frame between the double bottoms is really close to the same.
I am not predicting that the DXY will reach 100. I just open to the possibilities now. Fundamentally, I can not fathom the dollar going this high considering the amount of money the Fed is printing and the amount of money Congress seems to be wanting to spend. If it drops out of the channel than we know this was only an interesting exercise. But if it takes the same path upwards, I can now be open to the DXY moving that high and know I need to throw out my thesis that Gold will be much higher in the next few years.
On this weekly chart, I found that the DXY is in a upward price channel. I noticed that there is a double bottom similar to the one from 2008-2011, so I copied the bar pattern from that spot and added it to current price area.
I wanted to see how the SPX and Gold reacted to an increasing price in the DXY. The SPX had some slight fluctuations to the increases but not as much as I anticipated. Gold on the other hand was very susceptible to the DXY as anticipated.
It is interesting that the time frame between the double bottoms is really close to the same.
I am not predicting that the DXY will reach 100. I just open to the possibilities now. Fundamentally, I can not fathom the dollar going this high considering the amount of money the Fed is printing and the amount of money Congress seems to be wanting to spend. If it drops out of the channel than we know this was only an interesting exercise. But if it takes the same path upwards, I can now be open to the DXY moving that high and know I need to throw out my thesis that Gold will be much higher in the next few years.
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