DXY analysis: Dollar bull run against the debasement trade:

"Courage is not the absence of fear. It is the presence of fear, with the courage to face it." -Osho

At the start of the year, we did an analysis on DXY. This analysis is not a standard analysis. We had a premise. The premise is based on incentives of Donald Trump. What would he want prior to the Midterm elections. We said that he would want the stock market up- this premise was right. We said that the !0 year yields will be lower and inflation to be lower. This premise was wrong. To be honest he would have wanted it and if he had succeeded in Iran, then oil would have been much lower and the inflation would not have been so high. But we have to accept that this was wrong. But we also said that the he would want the DXY to be higher and 6 weeks into the midterm election and we are having a dollar bull run.

Please see previous analysis on DXY for context. https://www.muffettinvestments.com/dxy-forex-analysis/flowing-with-the-tide-dxy-review-and-outlooks

We have for a long time argued for a move into the liquidity zone before a move lower. This is aligned with Trump’s belief that the Dollar is overvalued and in a way he is probably right.

So at Muffett investments, we are looking for amove into the liquidity zone at the first instance and then we will be watching the blue line in the liquidity zone. If we ahve a purge, the price will be rejected here and price will start to leave the liquidity zone. This is the lowest risk short on gold in our view.

If price continues to strengthen and closes above the liquidity zone, what was previously resistance will not become support and then we will look for longs target liqudity above. If you see our previous posts, you will see how we have been right so many times in calling the DXy with just the liquidity. No economics. Just liquidity.

All analysis done in good faith and not investment advice.

May the Peace of the Lord be upon you all.