WELCOME

Welcome and thank you for visiting!

The charts, graphs and comments in my Trading Blog represent my technical analysis and observations of a variety of world markets...
* Major World Market Indices * Futures Markets * U.S. Sectors and ETFs * Commodities * U.S. Bonds * Forex

N.B.
* The content in my articles is time-sensitive. Each one shows the date and time (New York ET) that I publish them. By the time you read them, market conditions may be quite different than that which is described in my posts, and upon which my analyses are based at that time.
* My posts are also re-published by several other websites and I have no control as to when their editors do so, or for the accuracy in their editing and reproduction of my content.
* In answer to this often-asked question, please be advised that I do not post articles from other writers on my site.
* From time to time, I will add updated market information and charts to some of my articles, so it's worth checking back here occasionally for the latest analyses.

DISCLAIMER: All the information contained within my posts are my opinions only and none of it may be construed as financial or trading advice...please read my full Disclaimer at this link.

Dots

* If the dots don't connect, gather more dots until they do...or, just follow the $$$...

Loyalty

Loyalty

ECONOMIC EVENTS

 UPCOMING (MAJOR) U.S. ECONOMIC EVENTS...

***2024***
* Wed. Feb. 21 @ 2:00 pm ET - FOMC Meeting Minutes
* Wed. March 6 @ 2:00 pm ET - Beige Book Report
* Fri. March 8 @ 8:30 am ET - Employment Data
* Wed. March 20 @ 2:00 pm ET - FOMC Rate Announcement + Forecasts and @ 2:30 pm ET - Fed Chair Press Conference

*** CLICK HERE for link to Economic Calendars for all upcoming events.

Thursday, April 06, 2023

De-Dollarization of U.S.$?

* See UPDATES below...

Several articles have been written recently about the possible de-dollarization of the U.S. Dollar, as shown below.


While I'm not an expert on the matter to say "Yay" or "Nay," I can provide the following monthly charts of the U.S. Dollar (DX) and Gold (GC).

The charts show an inverse correlation to each other. Furthermore, their major resistance and support levels are depicted thereon...as noted below:

  • DX: 107.00, 100.00, and 90.00
  • GC: 2000, 1800, 1600 and 1400

Very simply, keep an eye on whether or not DX is able to hold above the 100.00 level. If not, we could see it re-test 90.00, or lower, if GC holds above 2000 and gathers momentum. However, GC is nearing a bearish triple-top formation, so it may face stiff resistance around its prior high of 2089.20 set in August 2020. If it spikes through that level, with sustained force, we could see buyers pile into Gold and sell the Dollar, especially if traders/investors view the long-term Gold formation as a bullish cup & handle pattern.

BUT, I think we'd need to see some sort of major global catalyst occur to produce such a buying and selling frenzy. Exactly what that would be remains to be seen.

However, it's worth monitoring their movements over the coming weeks for hints of sustained rising volatility and potential chaos in these and other world markets (equities, ETFs, bonds, currencies, commodities, and crypto currencies).

N.B. For a further detailed analysis that I recently published on Gold, please refer to my post of December 6, 2022, wherein I outlined a technical case to be made for Gold to reach $3000, in accordance with one of Saxo Bank's "Outrageous Predictions for 2023."



* UPDATE April 20...

Countries dumping the U.S. Dollar...


So, will we see China's Yuan become the dominant international reserve currency, if the following global GDP projection materializes?

* UPDATE April 22...

As U.S. debt grows and the U.S. Dollar weakens, the value of Gold should increase over time...


* UPDATE April 24...

As a hedge against U.S. sanctions, many foreign countries are buying Gold...

* UPDATE APRIL 25...

In emerging markets, Gold is surpassing the U.S. Dollar, as a safe haven...

* UPDATE April 28...

More on de-dollarization...