Almost counter to current institutional
thinking, the strength in the US Dollar will likely continue to push the US
stock market higher over the next few weeks/months and act as a supporting
price bias in any event of a short term global/us stock market price
collapse. Many traders/investors fail to
understand the capacity of the US Dollar to wreak havoc on foreign markets as
well as to act as a support level for US equities and US investments.
The support level near $96 is currently
acting as a solid price floor. Our
researchers believe an attempt to breach the $99 level will happen soon and
this continued strength will put further pressures on foreign currencies,
commodities, metals and trade issues.
These shifting dynamics of the currency markets are presenting very clear evidence that investors believe stronger, more mature economies are going to continue to perform over the future months that weaker, more at-risk economies. The Japanese Yen, Canadian Dollar, Swiss Franc, and US Dollar are all performing quite well in this Year-To-Date comparison graph (below). The New Zealand Dollar, Euro, British Pound, and Australian Dollar are all dramatically weaker.
Our research team put this comparison chart
together to further illustrate the weakness of Asian currencies in relation to
the relative strength of the US and major global currencies. This chart attempt to compare currency
strength by grouping relative currency pairs and comparing them as an Asian
Currency Group vs a Global Major Currency Group. As price advances, the Asian Currency Group
is relatively stronger overall. As price
declines, the Asian Currency Group is weakening and the Global Major Currency
Group is strengthening.
Currently, this chart shows the fragility of the Asian Currency Group. Any break of the lower price channel level and we enter a new downside price trend that may attempt to establish a much lower price support channel for Asian Currencies, Asian Stock Markets, and the overall global markets.
Our researchers believe the continued
strength of the US Dollar and the US stock market are pushing historical normal
price ranges beyond expected boundaries.
As gold increases because of fear and greed, countries with larger gold
reserves can attempt to offset certain losses from currency and economic
weakness. Yet companies and governments
that attempted to leverage the “Dollar Carry Trade” environment from years ago
may find themselves in very dangerous territory as Asian currencies continue to
weaken.
A stronger US Dollar will attempt to mute the upside price activity of Gold and Silver while pushing these currencies into deeper and deeper valuation declines. See our recent charts and short term dollar/gold forecast here. A continued shifting of capital away from “at-risk” economies/nations could push these currencies into a death spiral type of free-fall over time.
We believe the US Dollar will continue to
move moderately higher over the next 4+ weeks and likely attempt to move
towards the $99 price level. This move
will somewhat mute the advance of Gold and Silver, yet we believe the weakness
that is likely to unfold in the foreign currency markets will prompt renewed
fear and greed – pushing Gold prices much higher – even as the US Dollar
continues to strengthen.
Once the XAUUSD level breaks the $1440 level – it should rally up to the $1615 to $1625 level very quickly. This would likely be the breaking point for the Asian currencies as well. A move like that would likely push these Asian currencies below historical price envelopes and create a panic-type of a capital shift away from risk.
Our research team believes this move will
likely happen sometime between Mid-August and early September 2019. This means we are only about 35 to 45 days
away from an incredibly volatile price swing in the global markets. This is something that most traders/investors
have failed to even begin to comprehend or consider.
What would happen if the Asian capital markets and currencies collapsed on broad weakness and a major credit/debt crisis event? An event where currencies devalue to a level that suggests forward operations are severely threatened, the rising price of Gold is not offsetting losses and commodity prices collapse pushing even further pressures on commodity/currency backed loans/debt?
Be prepared for these incredible price swings before they happen and learn how you can identify and trade these fantastic trading opportunities in 2019, 2020, and beyond with our Wealth Building & Global Financial Reset Newsletter. You won’t want to miss this big move, folks. As you can see from our research, everything has been setting up for this move for many months – most traders/investors have simply not been looking for it.
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I can tell you that huge moves are about to start unfolding not only in currencies, metals, or stocks but globally and some of these supercycles are going to last years. A gentleman by the name of Brad Matheny goes into great detail with his simple to understand charts and guide about this. His financial market research is one of a kind and a real eye-opener. 2020 Cycles – The Greatest Opportunity Of Your Lifetime
As a technical analysis and trader since 1997, I have been through a few bull/bear market cycles. I believe I have a good pulse on the market and timing key turning points for both short-term swing trading and long-term investment capital. The opportunities are massive/life-changing if handled properly.
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