I wouldn’t give up on the dollar quite yet, but DXY appears to be rolling over without having surpassed any significant peaks on the daily chart. This is bearish price action. The January 26 low at 88.44 came within 15 cents of an 88.29 Hidden Pivot I’d drum-rolled as a place for a potentially important low. The dollar subsequently rallied to as high as 90.57, but as my latest DXY tout (below) makes clear, that’s not quite enough to refresh the bullish energy of the daily chart. Were the dollar to continue on its way lower, extending the mini-bear market begun from 103.82 in January 2017, stocks would likely resume an uptrend that seemed to have flourished on the effects, both psychological and real, of a weak dollar.
Rick’s Picks trading ‘touts’ are for educational purposes only. Past performance is no guarantee of future performance. (See full disclaimer at https://www.rickackerman.com/)
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Editors’ Picks
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GBP/USD hovers around 1.2620 in dull trading
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Gold price sits at all-time highs above $2,230
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Jito price could hit $6 as JTO coils up inside this bullish pattern
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Key events in developed markets next week
Next week, the main focus will be inflation and the labour market in the Eurozone. We expect services inflation to be impacted by the easter effect, while the unemployment rate to be unchanged.