DXY (USD) Dollar Index: Analysis – The US Dollar will crash after reaching 103.00 price level
Our #SignatureTrade strategy comes in 2 different variations. The simple variations & the complex variations. The simple variation has one single induction, meanwhile the complex variation can have two or more inductions or “fake-outs.”
Above is a great example of the complex #SignatureTrade, price is trending to the upside and an imminent reversal is pending to the downside. Price then breaks out to the downside (induction) faking the sell off, trapping sellers that are waiting the reversal. The trapped sellers then have most of their stops hit as price rises one last time (induction) faking out the buyers of the trend. The trend then reverses after faking out first the sellers , then the buyers in one “complex” yet understandable pattern.
What a coincidence that the day of the first induction was March 9th a Full Moon. The fall took 17 days and in just 8 days price races back up the same amount it fell trapping victims before they even had a chance to think & react.
The Complex #SignatureTrade Macro Variation
I don’t expect the bears to kick in until April (next month) , as this is when a fresh new monthly candle will be painted and the signature trade is playing out currently on the macro monthly timeframe.
Will the US Dollar crash? What are your thoughts? Comment below!
Factors to consider.
Thursday afternoon, during the chaos when the S&P 500 was down nearly 9.0%, what would turn into the worst day stock market sell-off since the 1987 crash, the Fed rolled out its fastest mega money-printer yet, after its smaller money-printers “malfunctioned“. It’s not going to be a long-drawn-out QE – though there is a component that is just that – but it’s going to be trillions of dollars, essentially all at once, front-loaded, starting today March, until mid April.
This is the Fed’s latest effort to bail out Wall Street, the cherished asset holders that are so essential to the Fed’s “wealth effect,” all repo market participants, the banks, and the Treasury market that suddenly has gone crazy. Lots of things have gone insane as the “Corona” Bubble unwinds messily.
Last week, the 10-year Treasury yield had plunged to almost 0 during the stock market sell-off, which was crazy but in line with the logic that investors were all investing into safe assets, and early Monday morning it fell to an unthinkable all-time lows.
- The Fed also widened the range for its reserve management purchases—which had previously been restricted to short-term Treasury bills—to include other types of financial instruments.
- The moves are designed to preserve liquidity in the market; in other words, the Fed wants to prevent “freezes” and make sure buyers and sellers still have the ability to trade.
- It’s the third time in four days the New York Fed has announced that it will bulk up lending in the repo market: on Tuesday, it announced an injection of $50 billion, and it added another $25 billion on Wednesday.
- Stocks initially pared back nearly half their losses on the announcement, but within the hour had dropped back close to their previous daily lows; at 2:00 p.m. EST on Thursday, the Dow Jones Industrial Average was down 8%.
Inflating the Bubble.
Thursday afternoon, the Fed announced in a surprise shock-and-awe move that it will use the repo market in a big way to try to prop up and inflate whatever needs propping up and inflating. It will offer a series of $500-billion term repos at least through April 13, amounting to $4.0 trillion in new money over the four-week period.
If all these $500-billion repos are accepted during the period, minus Friday’s one-month $500-billion repo that will unwind on April 13, they would amount to $4.0 trillion.
In total, this would amount to nearly $4.5 trillion through April 13 that the Fed is offering to create to bail out Wall Street, repo market participants, the asset holders, the banks, and Corporate America. It would more than double the already re-ballooned balance sheet (currently $4.3 trillion). It could push the balance sheet to nearly $9 trillion by April 13.
The US Dollar will crash in April after the FED cannot supply the liquidity to traders and the realization of this kicks in. I predict the DXY (US Dollar Index) to drop in a matter of days from 103.00 to 88.00 , a 14,000+ point price change. This may be the largest move in the history of all markets.
Friday, April 3rd is NFP (Non Farm Payroll)
The USD Index should be between the price range of 102.00 & 103.00 from March 31st to April 1st (start of a NEW MONTHLY candle) in order for this prediction to be more accurate.
I think we will see the US dollar gain much more strength due to the FED propping up the markets, be prepared for a WILD NFP Event on April 3rd.
April 8th is a “Super Moon”
April 13th is Easter Holiday
An esoteric meaning of Easter: Opening day of the New Year (which Easter celebrates), was known as ‘The Day Come Unto Us‘ in Egypt; in other words it was the day of the resurrection of the Higher Self. It was also the resurrection of the sun from the grave of night; the re-arising of vegetation from the grip of winter, as we have seen in my article at left. In short, the Egyptian resurrection symbolised the renewal of Nature and all creation. This doctrine culminated in a resurrection of the human soul from the body of death that was imaged by the mummy of Osiris.
April 13th is also the start of a NEW Candle on the weekly timeframe. This will most likely be the candle that starts the drop off and engulfs the entirety of the false gains created by the FED inflating the market.
If the weekly candle on April 13th is an engulfing candle, the previous weeks candle would have to be a buyer induction candle which would confirm our suspicions of a bullish market to induce buyers before the MASSIVE sell-off.
April 5th to April 10th would be the weekly green buyer induction candle and wick.
April 12th & 13th is Easter Holiday, the markets will open (if they open) with major gaps. The US Dollar (DXY) will start to crash and the excuse will be “little liquidity in the markets” , expect brokers to release warnings and historical moves to be made. This may be one of the most volatile events we have seen since Brexit.
Why move / crash the market on Easter holiday?
- Easter Holiday can be used as an excuse for extra volatility and little liquidity in the markets.
- Less retail traders will be trading as it is considered a “Holiday” , a perfect time to move the market, when the masses are distracted.
- Occult & Esoteric Symbolsim
- Banks will also be on Holiday, a perfect time cause havoc in the markets.
Conclusion – Will the US Dollar Crash?
April 13th the FED will stop injecting liquidity into the Dollar. We can only prepare for massive volatility, what we have recently seen is a small taste of what is to come next.