In this ratio as well as in DXY/(1+GOLD/2000+SILVER/20) there is a distinct and complete head and shoulders pattern showing further weakness in DXY along with bottoms in gold and silver (but you can see that in their own charts). This ratio is likely to fall along the green path in my analysis. Notice we've broken the floor trendline going back to July.
The rally in DXY today because of inflation numbers will be short lived. There is a majority expectation that high inflation will trigger a quicker Fed response, but the Fed will likely not even be able to finish their tapering which is stated to happen before raising rates.
The rally in DXY today because of inflation numbers will be short lived. There is a majority expectation that high inflation will trigger a quicker Fed response, but the Fed will likely not even be able to finish their tapering which is stated to happen before raising rates.
