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U.S. Dollar Threatened by Eerie Similarity to Early 2000s Meltdown

ByChris Kimble
Published 07/20/2023, 02:51 AM

Recent weakness in the US dollar has helped to propel commodities such as gold and silver higher.

Today’s analysis shows a potential repeating pattern that could mean significantly more weakness for King Dollar… but only if triggered.

Below is a “weekly” chart of the US Dollar Index dating back 25 years. As you can see, the meltdown in the early 2000s started with a key Fibonacci patterned decline… one that looks awfully familiar to the recent price action for the buck.

US Dollar Weekly Chart

First, the dollar fell sharply. Then it rallied to the 38.2% Fibonacci retracement (resistance) before falling again and weakly rallying to the 23% Fib level and failing. What happened next (in the early 2000’s) was a big-time decline.

This pattern is playing out again for King Dollar this year. Could it be deja vu all over again? If the buck breaks down through support, it will signal further weakness. Stay tuned!

Latest comments

I thought the dollar would go back up, at least in the short term. It appears to have some strong support at the 100 mark. I also think an upward trajectory is likely given the past move in the last year, and becuase it finally broke above the 100 mark after years of resistance. Further, if the reccession fears continue to appear to be overblown- thats why the stock markets major indices are up double digits- this means the dollar should get stronger. Particularly if inflationary challenges surface again and continue to persist. Although, it may be only temporary, the dollar will most likely go up bc the fed will interest rates again in the month of july. If the dollar does rise i see it going up another 3-5%, which may coincide with the nasdaq dropping about 7-10% or more from here. At least thats my guess.
I say you nailed this. The charts DO COINCIDE. BRILLIANT ANALYSIS AND ANALOGY
please help if I'm deciding to buy a cig nal is considered this country how much the price?
It is highly likely given the environment we are in
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