Strawberry Blonde's Market Summary: April 2023

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The charts, graphs and comments in my Trading Blog represent my technical analysis and observations of a variety of world markets...

* Major World Market Indices * Futures Markets * U.S. Sectors and ETFs * Commodities * U.S. Bonds * Forex

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Thursday, April 06, 2023

De-Dollarization of U.S.$?

* See UPDATES below...

Several articles have been written recently about the possible de-dollarization of the U.S. Dollar, as shown below.

Source: ZeroHedge

While I'm not an expert on the matter to say "Yay" or "Nay," I can provide the following monthly charts of the U.S. Dollar (DX) and Gold (GC).

The charts show an inverse correlation to each other. Furthermore, their major resistance and support levels are depicted thereon...as noted below:

DX: 107.00, 100.00, and 90.00
GC: 2000, 1800, 1600 and 1400

Very simply, keep an eye on whether or not DX is able to hold above the 100.00 level. If not, we could see it re-test 90.00, or lower, if GC holds above 2000 and gathers momentum. However, GC is nearing a bearish triple-top formation, so it may face stiff resistance around its prior high of 2089.20 set in August 2020. If it spikes through that level, with sustained force, we could see buyers pile into Gold and sell the Dollar, especially if traders/investors view the long-term Gold formation as a bullish cup & handle pattern.

BUT, I think we'd need to see some sort of major global catalyst occur to produce such a buying and selling frenzy. Exactly what that would be remains to be seen.

However, it's worth monitoring their movements over the coming weeks for hints of sustained rising volatility and potential chaos in these and other world markets (equities, ETFs, bonds, currencies, commodities, and crypto currencies).

N.B. For a further detailed analysis that I recently published on Gold, please refer to my post of December 6, 2022, wherein I outlined a technical case to be made for Gold to reach $3000, in accordance with one of Saxo Bank's "Outrageous Predictions for 2023."