US dollar (DXY) has activated its Inverted H&S, Gold/Silver maintains its uptrend, watch silver going forward…
I do not make predictions because I do not pretend to be a guru.* But NFTRH has been tracking what has been an uptrend in the US dollar for all of 2021, keeping us well aware of the potentials being realized from late summer into the fall. A higher low was made in May and now a higher high, completing an Inverted Head & Shoulders pattern that we’ve been projecting since USD put in the theoretical right side shoulder last spring.
Until recently it was a projection. Now it is active after testing the (dashed) neckline, holding the (blue) 50-day average and busting to a new high for the cycle. Simple, no predictions but a heck of a lot of attention and respect for the process.
You can see the three targets we’ve had laid out for the world’s reserve currency, which has logically caused market stress of late. It’s as simple as ‘you live (pump markets) by devaluing the currency, you die (markets correct) when it rebels. Now if the rebellion does not become something more than moderate and should end at target #1, we’ll probably go back to our regularly scheduled programming of pervasive inflation problems on the macro.
As you can see, the three targets are Fibonacci retrace levels. All doable depending on how aggressively risk goes off and man and machine seek liquidity (as opposed to market speculation) in the near term. Of note, the pattern itself has a theoretical measured target of 97. Again, not a prediction but now that the pattern is active a viable objective.
And speaking of liquidity, the issue is compounded when USD’s fellow Horseman (of the Apocalypse) is riding alongside. Continue reading "US Dollar On Plan, Attended By Gold/Silver Ratio"
