USD US Dollar Daily Chart

The dollar is over 82 this morning to 82.15.  A higher dollar causes weaker oil, copper and commodities, and equities markets. The indicators are negatively diverged (except for the MACD line), to no surprise, a mirror image of the euro. Thus, price needs to see a pull back now because of the negative divergence but another higher high should occur to satisfy the MACD line. The brown upward-sloping channel is in play. The weekly chart is constructive for dollar bulls so after a pullback occurs, the dollar should continue higher in the weeks ahead.  As all major nations race to debase their currencies, including the U.S., by default, the dollar gets less bang for its buck concerning stimulus. QE was most effective when the U.S. was the only one doing it, or perhaps one other country, such as China stimulating at the same time in 2009-2010. Now, everybody and his brother is printing so the dollar is floating higher. The higher dollar then pressures gold. Thus, QE4 Infinity and Beyond is not having the bullish effect on gold that it had in the days of QE1 and QE2.

Europe will have to cut rates and this will keep the euro lower to help growth. Lower euro = higher dollar = lower equities. Higher euro = lower dollar = higher equities. Projection overall moving forward is higher dollar, lower euro and equities markets moving sideways to sideways lower. 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.