US Dollar Crash Update

Media attention about the crashing US dollar has started to gather attention, when the US dollar spiked to the downside. How much short term downside, there is still to come, is unknown, but the bigger bearish trend is still clear. The US dollar is in a much bigger bear market than what anyone expects to happen at this time. The US dollar will not turn on some mythical price bottom and carry on to new record highs, as  it takes much more than just price to stop any trend.

Sure, short term bullish moves will happen, but not until the entire world hates the US dollar and loves gold, can the US dollar be ready for another new bull market. Yes, we may have some problems figuring out this potential wave 1-2 in Minor degree, as we still have a small window for the US dollar to turn north and produce a “C” wave bullish run.

Also the commercial traders  are back to being net short, but they are starting to add to their long positions. Short term, that may produce a US dollar rally, and slow gold down a bit as well.

The US dollar can backfire and turn into a “C” wave bullish phase. If and when that happens, then we know the top trend line will get sliced in two. The trend line that touches more peaks or dips is the main trend line, and bigger degree levels will wander far outside this trend line.

Maybe raising of the minimum wage this year is causing the US dollar to crash, and not some secret evil currency manipulators.