{"id":151190,"date":"2019-07-09T11:11:30","date_gmt":"2019-07-09T15:11:30","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=151190"},"modified":"2019-07-09T10:13:49","modified_gmt":"2019-07-09T14:13:49","slug":"us-dollar-strength-will-drive-markets-higher","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2019\/07\/us-dollar-strength-will-drive-markets-higher\/","title":{"rendered":"US Dollar Strength Will Drive Markets Higher"},"content":{"rendered":"
July 9, 2019<\/div>
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By TheTechnicalTraders.com<\/u><\/a><\/strong><\/p>\n

Almost counter to current institutional thinking, the strength in the US Dollar will likely continue to push the US stock market higher over the next few weeks\/months and act as a supporting price bias in any event of a short term global\/us stock market price collapse.\u00a0 Many traders\/investors fail to understand the capacity of the US Dollar to wreak havoc on foreign markets as well as to act as a support level for US equities and US investments.<\/p>\n

The support level near $96 is currently acting as a solid price floor.\u00a0 Our researchers believe an attempt to breach the $99 level will happen soon and this continued strength will put further pressures on foreign currencies, commodities, metals and trade issues.<\/p>\n

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These shifting dynamics of the currency markets are presenting very clear evidence that investors believe stronger, more mature economies are going to continue to perform over the future months that weaker, more at-risk economies. \u00a0The Japanese Yen, Canadian Dollar, Swiss Franc, and US Dollar are all performing quite well in this Year-To-Date comparison graph (below).\u00a0 The New Zealand Dollar, Euro, British Pound, and Australian Dollar are all dramatically weaker.<\/p>\n

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Our research team put this comparison chart together to further illustrate the weakness of Asian currencies in relation to the relative strength of the US and major global currencies.\u00a0 This chart attempt to compare currency strength by grouping relative currency pairs and comparing them as an Asian Currency Group vs a Global Major Currency Group.\u00a0 As price advances, the Asian Currency Group is relatively stronger overall.\u00a0 As price declines, the Asian Currency Group is weakening and the Global Major Currency Group is strengthening.<\/p>\n

Currently, this chart shows the fragility of the Asian Currency Group.\u00a0 Any break of the lower price channel level and we enter a new downside price trend that may attempt to establish a much lower price support channel for Asian Currencies, Asian Stock Markets, and the overall global markets.<\/p>

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Our researchers believe the continued strength of the US Dollar and the US stock market are pushing historical normal price ranges beyond expected boundaries.\u00a0 As gold increases because of fear and greed, countries with larger gold reserves can attempt to offset certain losses from currency and economic weakness.\u00a0 Yet companies and governments that attempted to leverage the \u201cDollar Carry Trade\u201d environment from years ago may find themselves in very dangerous territory as Asian currencies continue to weaken.<\/p>\n

A stronger US Dollar will attempt to mute the upside price activity of Gold and Silver while pushing these currencies into deeper and deeper valuation declines.\u00a0 See our recent charts and short term dollar\/gold forecast here<\/strong><\/a>. A continued shifting of capital away from \u201cat-risk\u201d economies\/nations could push these currencies into a death spiral type of free-fall over time.<\/p>\n

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We believe the US Dollar will continue to move moderately higher over the next 4+ weeks and likely attempt to move towards the $99 price level.\u00a0 This move will somewhat mute the advance of Gold and Silver, yet we believe the weakness that is likely to unfold in the foreign currency markets will prompt renewed fear and greed \u2013 pushing Gold prices much higher \u2013 even as the US Dollar continues to strengthen.<\/p>\n

Once the XAUUSD level breaks the $1440 level \u2013 it should rally up to the $1615 to $1625 level very quickly.\u00a0 This would likely be the breaking point for the Asian currencies as well.\u00a0 A move like that would likely push these Asian currencies below historical price envelopes and create a panic-type of a capital shift away from risk.<\/p>\n

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Our research team believes this move will likely happen sometime between Mid-August and early September 2019.\u00a0 This means we are only about 35 to 45 days away from an incredibly volatile price swing in the global markets.\u00a0 This is something that most traders\/investors have failed to even begin to comprehend or consider.<\/p>\n

What would happen if the Asian capital markets and currencies collapsed on broad weakness and a major credit\/debt crisis event?\u00a0 An event where currencies devalue to a level that suggests forward operations are severely threatened, the rising price of Gold is not offsetting losses and commodity prices collapse pushing even further pressures on commodity\/currency backed loans\/debt?<\/p>\n

Be prepared for these incredible price swings before they happen and learn how you can identify and trade these fantastic trading opportunities in 2019, 2020, and beyond with our \u00a0Wealth Building & Global Financial Reset Newsletter<\/strong>.\u00a0 You won\u2019t want to miss this big move, folks.\u00a0 As you can see from our research, everything has been setting up for this move for many months \u2013 most traders\/investors have simply not been looking for it.<\/p>\n

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I can tell you that huge moves are about to start unfolding not only in currencies, metals, or stocks but globally and some of these supercycles are going to last years. A gentleman by the name of Brad Matheny goes into great detail with his simple to understand charts and guide about this. His financial market research is one of a kind and a real eye-opener.\u00a02020 Cycles \u2013 The Greatest Opportunity Of Your Lifetime<\/strong><\/a><\/p>\n

As a technical analysis and trader since 1997, I have been through a few bull\/bear market cycles. I believe I have a good pulse on the market and timing key turning points for both short-term swing trading and long-term investment capital. The opportunities are massive\/life-changing if handled properly.<\/p>\n

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Chris Vermeulen \u2013 TheTechnicalTraders.com<\/u><\/a><\/strong><\/p>\n

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 <\/p>\n","protected":false},"excerpt":{"rendered":"

By TheTechnicalTraders.com Almost counter to current institutional thinking, the strength in the US Dollar will likely continue to push the US stock market higher over the next few weeks\/months and act as a supporting price bias in any event of a short term global\/us stock market price collapse.\u00a0 Many traders\/investors fail to understand the capacity […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-151190","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/151190","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=151190"}],"version-history":[{"count":1,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/151190\/revisions"}],"predecessor-version":[{"id":151191,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/151190\/revisions\/151191"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=151190"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=151190"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=151190"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}