USD US Dollar Daily Chart

Dollar daily chart shows how price has stumbled lower the last two days. The FOMC Minutes smacked the buck in the back of the head with a 2x4 at 2 PM EST yesterday when the dovish language pointed at stimulus coming sooner rather than later.  Of course, the same old result occurs as the Fed artifically maintains equity markets with stimulus, the dollar weakens, and copper, commodities and equities move higher. No wonder Ma and Pa do not want to invest. They see plainly how the stock exchange is simply a casino based on stimulus, there are no free markets, equities will go up with stimulus, and then down when the punch bowl runs dry or is taken away.

The green lines in the center of the chart show two bull flag patterns that broke down once the Fed started using their money pumping talk in July. The bull flags targeted 85-ish before they were overruled by stimuluus talk.  The blue downward-sloping channel is now in place.  The 50-day MA at 82.62 is an important S/R level that finally resolved to the downside. Note that the 20-day MA just stabbed down thru the 50-day which is a bearish development (bearish for dollar means bullish for copper, commodities and equities markets). The indicators (red and green lines) show a combination of weak and bleak indications (RSI and MACD line) that want to see another lower low in price after a bounce, and the positive divergence (histogram, stochastics and ROC) that want to see the dollar bounce higher now.  The channel lines and horizontal support and resistance lines in brown provide price levels of interest.

Projection is for the dollar to bounce now, which means markets will weaken, but then price will come back down for another look at the 80.5-81.5 area. Note the upward-sloping 200-day MA that will form a confluence with the horizontal support at 80.7-ish, which probably provides a sturdy base that may not be ruptured. The dollar weekly chart remains constructive for a continual slow sideways to sideways up move in the dollar, which may, over time, finally push the dollar up to the 85-ish levels that the bull flags wanted to see before being interrupted by more central banker games. This information is for educational and entertainment purposes only.  Do not invest based on anything you read or view here.  Consult your financial advisor before making any investment decision.