The US dollar index which represents a measure of the value of the United States dollar relative to a basket of foreign currencies, keeps rising during the recent 6 years. Its value was around 71 in 2008, and now it's 101.75. But there are some major events related to this index ahead in the medium-term future. Look at the chart below.
As you can see, the target is 135-140 in the year 2020. Now I will explain why and what's going to happen after that.
Gigantic Bearish Cypher pattern is forming
This is really huge, a gigantic bearish cypher pattern has been forming since the year 1985, and it's going to be completed in 2020. Once it completes, a major trend reversal is likely to occur and the following downtrend's length will be comparable to the length of the formed pattern. Here is the pattern shown schematically:
Hurst Cycles
The 18-year Hurst cycle going to finish in 2020 +/- 1 year. Traditionally most assets that are traded against the dollar make bottoms at the end of each cycle, and each asset has its own cyclical structure (i.e. key points at which the cycles begin and finish). But the dollar itself has an inverted cyclical structure, which means it makes tops at the end of each cycle.
By the way, the US dollar Hurst cyclical structure coincides exactly with the cyclical structure of the Dubai Financial Market index (DFMGI) shown in my article "The best time to invest in Dubai will be the year 2020", except for the fact that it's inverted.
Once it makes the next top in 2020, the following major downtrend should last at least 9 years.
Angle and sine line
The sine line on the chart above shows more precise structure of the price movements during the time cycles. Angle on my chart shows more accurate price target, which is, as said above, 135-140.