The graph: TVC:DXY*1000000000000/ECONOMICS:USM2 (without *10000... scales equal to 0 )
DXY - the value of the United States dollar relative to a basket of foreign currencies, often referred to as a basket of U.S. trade partners' currencies.
DXY is a key economic and trading value. It's changes impact/reflect values of stocks, commodities, cryptocurrencies and other financial instruments.
M2 (US money supply '2') is closely watched as an indicator of money supply and future inflation, and as a target of central bank monetary policy.
Technical Inference
Technical analysis displays strong existing resistance+support lines formed by the blue parallel channel. Numerous touching/turning points in major and minor lines. Considering strong correlation with resistance and support lines, improvement in analysis and trading accuracy may be achieved.
DXY/Money Supply 2 had hit its 3rd peak recently. I believe we will see some upside movement in the short-term, with fierce bearish reversal incoming in the long-term, likely at the 1.414(5.277) Fib resistance retest. it
Especially since 2002, CCs (correlation coefficients) between DXY/Money Supply and IXIC, SPX, Gold have signified negatively strong correlations.
For equities and crypto markets:
- short-term bearish movement
- long-term bullish
For Commodities:
- I believe further QE (quantitative easing), increasing the money supply will decrease the US dollars value. Thereby, a weaker dollar means commodities are less expensive in other currencies – this increases demand, and therefore prices for US.
Indicators
Weekly RSI hit above 70, monthly Macd moving towards its mean.
Further resources:
F
urther images+indicators
DXY - the value of the United States dollar relative to a basket of foreign currencies, often referred to as a basket of U.S. trade partners' currencies.
DXY is a key economic and trading value. It's changes impact/reflect values of stocks, commodities, cryptocurrencies and other financial instruments.
M2 (US money supply '2') is closely watched as an indicator of money supply and future inflation, and as a target of central bank monetary policy.
Technical Inference
Technical analysis displays strong existing resistance+support lines formed by the blue parallel channel. Numerous touching/turning points in major and minor lines. Considering strong correlation with resistance and support lines, improvement in analysis and trading accuracy may be achieved.
DXY/Money Supply 2 had hit its 3rd peak recently. I believe we will see some upside movement in the short-term, with fierce bearish reversal incoming in the long-term, likely at the 1.414(5.277) Fib resistance retest. it
Especially since 2002, CCs (correlation coefficients) between DXY/Money Supply and IXIC, SPX, Gold have signified negatively strong correlations.
For equities and crypto markets:
- short-term bearish movement
- long-term bullish
For Commodities:
- I believe further QE (quantitative easing), increasing the money supply will decrease the US dollars value. Thereby, a weaker dollar means commodities are less expensive in other currencies – this increases demand, and therefore prices for US.
Indicators
Weekly RSI hit above 70, monthly Macd moving towards its mean.
Further resources:
F