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If Support Breaks, Would Belief In U.S. Dollar End?

ByChris Kimble
Published 08/18/2020, 11:56 AM
Updated 07/09/2023, 06:31 AM

Is the U.S. dollar about to experience a dual breakdown of support? If so, will the world no longer believe in the U.S. dollar?

This chart looks at the U.S. Dollar over the past 22 years on a weekly basis.

The 92 zone, which is line (1), has been support and resistance several times over the past couple of decades.

The dollar is testing this line as well as the 9-year rising support at (2).

If this important dual support level does not hold, red hot gold and silver would receive a bullish message.

What the dollar does at (2), will send a  long-term important message to the commodities markets.

Latest comments

Does anyone believe in th dollar anymore
Thanks, a picture says more than a thousand words, so to speak, many thanks.
Well that depends on what happens next... Is the recession/depression we are going into going to be inflationary, or deflationary. Continue the unemployment benefits increase the M2, dollar falls. Which will cause inflation beyond our control. Remove them and make people have to start paying rent and their mortgage and the M2 will decrease in size like a a kid drinking a slurpee on a hot summer day. especially with the massive credit squeeze going on. EITHER WAY WE LOSE. But I bet it ends up deflationary and thats when they dump gold, silver, and equities on all the perma bulls. followed by a larger inflationary push after.
Good article Chris. A break here will be sold heavily based on the 1M and 1W RSI and MACD. And then that hard floor of 92 will be a hard ceiling.
Wonderful opportunity. Thanks for the expert overview!
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