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Thursday, April 18, 2024

US Dollar Forecast – Weakness

Courtesy of Read the Ticker

us-dollar-forecast--weaknessThe rise in the US 10 yr as pulled up the US dollar, but soon the trillions of new money printing will soon pressure the dollar south. 



We can see below the dollar ‘T Theory’ cycle suggesting we near done, and a period of change is due in the next 4 to 6 months. Notice how neatly the US dollar fits into even weekly time periods.  





The recent US dollar strength had to happen as EVERY ONE was short the US dollar, as the short energy for hitting the ASK BUTTON just dried up, these past six weeks have set up a nice bounce to smash the US dollar ASK once again over the next 4 to 6 months.







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USD1






MI2Partners posted this 20 year US Trade Weighted Index (TWI) model on twitter, here



@MI2Partners In #macroeconomics, when you get the direction of the #USdollar right, the rest falls into place. Triffin’s Dilemma reminds us of the inconsistencies in domestic & international goals. The consequences for the #dollar will be profound




As you can see their forecast is for a new 20 year low in the TWI.



Of course this (or just half of the crash) would create a hyperinflation risk on rally, just like the DOW in 1929 or 1987, and just before US mid terms. Hmmm typical!





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USD3








readtheticker.com US dollar model (below) suggest new lows for the DXY.



Main drivers are European banks are doing better (or less worse) compared to US banks, add on the comparison of core inflation between the US and Europe and lower DXY lows can be expected.







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USD1




CRAZY has not even started yet!





This is what a hyperinflation DOW blow off top could look like, mapped with 1929 and 1987. DOW to 44,000 or 56,000. YES, this is what can happen at the end of a 80 year debt cycle.




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DOW 4





Of course if the DOW can do something crazy like the above, BITCOIN is bound to go batty!



OH Dear!









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NOTE: readtheticker.com does allow users to load objects and text on charts, however some annotations are by a free third party image tool named Paint.net



Investing Quote…



..”Being in the market at all times is not the key to profits. Being in the market when there is a clear, unconfused technical signal, and the trader’s judgment is not swayed by emotion, is the method for trading success”..



Richard D Wyckoff





In the short run, the market is a voting machine, but in the long run it is a weighing machine.



Benjamin Graham





…..“I measure what’s going on, and I adapt to it. I try to get my ego out of the way. The market is smarter than I am so I bend.”..



Martin Zweig





..”It’s not whether you’re right or wrong that’s important, but how much money you make when you’re right and how much you lose when you’re wrong”..



George Soros







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Warren Buffett







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