Keeping an Eye on the Dollar

May 10, 2019 / by Bill Noble

Applying Jesse Livermore’s Speculative Chart to the U.S. Dollar Index (DXY), it might be a good idea to sell the next rally in the DXY, anticipating a sharp drop in the Dollar next week.

Figure 1 shows the Livermore construct.  Figure 2 shows the construct applied an intraday chart of the U.S. Dollar Index (DXY).

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Most likely, the dollar will start moving lower, once S&P futures (ES) get to their downside target of $2,782 (Figure 3).

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Bottom Line: When stocks are done crashing, it may be the dollar’s turn to start falling sharply. The trade war may start to have a negative impact on the dollar. The recent Bitcoin (BTC) rally may be smart money piling into crypto in advance of a possible big down move in the Dollar.

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