Correction USDollar | Are the bulls winning the day | 17 September 2021

US$ Index

covering USD Index, EUR/USD, GBP/USD, GBP/EUR, USD/JPY

(Previous update in brackets)

USD Index Monthly Weekly Daily
93.25 (92.12)
Trend ↑ (↑) ↑ (↓) ↑ (↓)
% Risk
Weight
42 (35) 72 (76) 68 (10)
Allocation 70% (70%)

$Index chart

 


Analysis

17 September 2021 close: The continued dollar challenge upward this week is causing uncertainty on our side as to the medium term direction. Even though we do not see the logic of a strong dollar against a backdrop of Chinese and Russian alternative asset accumulation and the discriminate Wall Street favoured monetary financing, the medium term outllook admittedly eyes a little stronger.
We may decide to limit our hedge to 50% but will wait for both hourly and 4 hourly risk to move from a present very high risk position to a possible buy signal in the next couple of days. The outlook isn't conclusive at all, hence no change for now.

03 September 2021 close: The most likely status is a continuation of the US$index consolidation between roughly 90.0 and 93.0. Consolidations are usually best followed in a medium term timescale which is now in higher risk. It means the most likely scenario is for the Index to move towards the 90.0 handle before the market makes up its mind. Several months out. No Change.

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Posted in A - All Financial Blogs | 2021 Forecast, FX - USD Index, EUR, GBP, YEN | EYEFORGOLD.

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