BTC/USD, XAU/USD (Gold), XAG/USD (Silver), DXY (US Dollar Index): Technical Outlook, Edition #27 (19/06/21)
Weekend Spotlight ft. $DXY, BTC/USD, XAU/USD, XAG/USD. Following on from our discussion of USD strength, let's walk through some asset charts that may feel pain in the coming week's trading session
Rally in US Dollar strength has asset markets on the ropes
The US Dollar Currency Index decided to extend its rally past 92.00 points last night, further adding to the selling pressure against a range of other assets - for example, Bitcoin, Gold and Silver.
This rally on the US Dollar stems from FED Chairman Powell bringing at least two interest rate hikes forward from 2024 to 2023.
By scrutinising the $DXY against other assets, we can observe an inverse relationship between the world's reserve currency and several popular non-fiat securities.
Understanding the possible outcomes will be vital in navigating these turbulent market conditions.
Check out Q's price-action forecast and examine the charts below:
US Dollar Currency Index, $DXY - Daily (D1)
Bitcoin, BTC/USD - Daily (D1)
Gold, XAU/USD - Daily (D1)
Silver, XAG/USD - Daily (D1)
IMPORTANT - Read this if you missed Q's Conclusion in our previous $DXY: Technical Outlook Edition #26 (19/06/2021)
Patience is more than just a virtue; it can also protect your capital.
Remain vigilant for overtly aggressive dip-buying during tonight's European and US trading sessions, where the $DXY decisively rejects the .618 fib retracement level.
It may be wise to reduce intended entry sizes and staggering orders until we confirm either a USD reversal or a short squeeze.
The aggressive USD rally may prove to be an excellent opportunity to continue staggering small entries in the assets mentioned while holding US Dollars as an interim hedge.
See you again for the next update. - q
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