Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
Bitcoin Price TRIGGER for Accumulating Into Alt Coins for 2022 Price Explosion - 30th Nov 21
Omicron Covid Wave 4 Impact on Financial Markets - 30th Nov 21
Can You Hear It? That’s the Crowd Booing Gold’s Downturn - 30th Nov 21
Economic and Market Impacts of Omicron Strain Covid 4th Wave - 30th Nov 21
Stock Market Historical Trends Suggest A Strengthening Bullish Trend In December - 30th Nov 21
Crypto Market Analysis: What Trading Will Look Like in 2022 for Novice and Veteran Traders? - 30th Nov 21
Best Stocks for Investing to Profit form the Metaverse and Get Rich - 29th Nov 21
Should You Invest In Real Estate In 2021? - 29th Nov 21
Silver Long-term Trend Analysis - 28th Nov 21
Silver Mining Stocks Fundamentals - 28th Nov 21
Crude Oil Didn’t Like Thanksgiving Turkey This Year - 28th Nov 21
Sheffield First Snow Winter 2021 - Snowballs and Snowmen Fun - 28th Nov 21
Stock Market Investing LESSON - Buying Value - 27th Nov 21
Corsair MP600 NVME M.2 SSD 66% Performance Loss After 6 Months of Use - Benchmark Tests - 27th Nov 21
Stock Maket Trading Lesson - How to REALLY Trade Markets - 26th Nov 21
SILVER Price Trend Analysis - 26th Nov 21
Federal Reserve Asks Americans to Eat Soy “Meat” for Thanksgiving - 26th Nov 21
Is the S&P 500 Topping or Just Consolidating? - 26th Nov 21
Is a Bigger Drop in Gold Price Just Around the Corner? - 26th Nov 21
Financial Stocks ETF Sector XLF Pullback Sets Up A New $43.60 Upside Target - 26th Nov 21
A Couple of Things to Think About Before Buying Shares - 25th Nov 21
UK Best Fixed Rate Tariff Deal is to NOT FIX Gas and Electric Energy Tariffs During Winter 2021-22 - 25th Nov 21
Stock Market Begins it's Year End Seasonal Santa Rally - 24th Nov 21
How Silver Can Conquer $50+ in 2022 - 24th Nov 21
Stock Market Betting on Hawkish Fed - 24th Nov 21
Stock Market Elliott Wave Trend Forecast - 24th Nov 21
Your once-a-year All-Access Financial Markets Analysis Pass - 24th Nov 21
Did Zillow’s $300 million flop prove me wrong? - 24th Nov 21
Now Malaysian Drivers Renew Their Kurnia Car Insurance Online With Fincrew.my - 24th Nov 21
Gold / Silver Ratio - 23rd Nov 21
Stock Market Sentiment Speaks: Can We Get To 5500SPX In 2022? But 4440SPX Comes First - 23rd Nov 21
A Month-to-month breakdown of how Much Money Individuals are Spending on Stocks - 23rd Nov 21
S&P 500: Rallying Tech Stocks vs. Plummeting Oil Stocks - 23rd Nov 21
Like the Latest Bond Flick, the US Dollar Has No Time to Die - 23rd Nov 21
Why BITCOIN NEW ALL TIME HIGH Changes EVERYTHING! - 22nd Nov 21
Cannabis ETF MJ Basing & Volatility Patterns - 22nd Nov 21
The Most Important Lesson Learned from this COVID Pandemic - 22nd Nov 21
Dow Stock Market Trend Analysis - 22nd Nov 21

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

US Dollar Breaks Below 90 – Continue To Confirm Depreciation Cycle Phase

Currencies / US Dollar May 24, 2021 - 05:59 PM GMT

By: Chris_Vermeulen

Currencies

If you’ve been following my recent research posts, you already know my research team and I are expecting some very big volatility and trends in the US and global markets over the next 12 to 48 months. 

The US Dollar Index fell below a critical support level above 90 recently.  This move lower after attempting to bottom in early 2021 suggests our broad Appreciation/Depreciation cycle phase research is continuing to play out.  This means we should start to prepare for bigger trends, more volatility, and the potential for broad market price rotation over the next few years. You can read about our Appreciation/Depreciation cycle phase research entitled Long Term Gold/US Dollar Cycles Show Big Trends For Metals and Metals Rally Early In 2021.


You Can’t Fight The Market Tides – Get Ready For The Depreciation Cycle Phase

These broader market cycle phases act like lunar phases in ocean tides.  There are always smaller waves that lap at the shore continually, but there are bigger trends, the lunar cycle trends, that drive larger excess tidal highs and lows.  The global markets work in much the same manner with the longer-term Appreciation/Depreciation cycle phases (which usually last about 7 to 9 years in length).  When we are in an Appreciation phase, precious metals fall out of favor as global traders and investors pile into strong global equity market trends.  When we are in a Depreciation phase, precious metals tend to trend higher because global market volatility, a declining US Dollar, credit market and other concerns drive traders into more protective/hedging positions.

In short, the transition from a general market Appreciation cycle phase, which we believe ended in late 2019, into a new general market Depreciation cycle phase suggests the following general trends will take place over the next 5 to 7+ years and likely prompt the following types of price trends:

  • Precious Metals should continue to rally as broad market economic and credit market concerns become elevated.
  • Larger price volatility and bigger price rotations will likely drive traders to become more cautious of the “buy and hold” type of passive investing.  These bigger price swings and how they related to sector trends will create a true “traders marketplace”.
  • Commodities usually rally to a peak near the end of an Appreciation cycle phase. You can learn more about these Commodities Super Cycles here.
  • Generally, global equities markets attempt to reprice true value within a Depreciation cycle phase.  This happens because the end of the Appreciation cycle phase usually prompts a “euphoric rally” type of extreme peak.  After that peak exhausts, the transition into the Depreciation cycle phase usually consists of a “revaluing price phase” which is followed by an ultimate bottom, then the start of a reflation phase.

Our technical levels on the US Dollar are 89.99 (which has already been breached) and 88.43.  Once the 88.43 level is breached,the next major standout lows are near 84.47 and 79.74.  These deeper support levels represent a further decline of -6% to -11% for the US Dollar. My belief is that the markets are transitioning into a new Depreciation cycle phase suggests that any move below the 88.43 level will likely confirm the cycle transition is persisting and that we can continue to expect bigger volatility and bigger trends in metals and within the global markets.

Start Preparing Now For The US Dollar To Breach The 88.43 Level

If our research is correct, the next 5+ years are going to become a “traders marketplace” – where the large rambling bullish price trends are less frequent and where active traders want to start executing strategic trades when the markets confirm real opportunity exists for profits – very similar to what happened between 2002 and 2011. 

Be sure to sign up for our free market trend analysis and signals now so you don’t miss our next special report!

This following example of the Gold Cycle Phase, as seen on the chart below, highlights the Appreciation/Depreciation cycle phases and shows key Fibonacci Extension price targets near $2100, $2600, and $3200 for Gold.  Gold may rally much higher than the $3200 level if the current Depreciation cycle phase is aggressive in nature.  Only time will tell what really happens because of this new cycle phase.

If my research is correct, the next 7+ years will test the skills of even the best traders.  You’ll need to really be on top of your strategies and fully understand the volatility and risks that are present because of this new Depreciation cycle phase. This is the type of market where huge opportunities exist if you can stay well protected from the risks and volatility while capturing the big trends.  Are you ready for these exciting market trends?  Want to know how we can help?

You can learn more about how I identify and trade the markets by watching my FREE step-by-step guide to finding and trading the best sectors. Of course, my BAN Trader Pro newsletter service does all the work for you, with my daily pre-market reports, proprietary research, and BAN trade alerts. 

Chris Vermeulen
www.TheTechnicalTraders.com

Chris Vermeulen has been involved in the markets since 1997 and is the founder of Technical Traders Ltd. He is an internationally recognized technical analyst, trader, and is the author of the book: 7 Steps to Win With Logic

Through years of research, trading and helping individual traders around the world. He learned that many traders have great trading ideas, but they lack one thing, they struggle to execute trades in a systematic way for consistent results. Chris helps educate traders with a three-hour video course that can change your trading results for the better.

His mission is to help his clients boost their trading performance while reducing market exposure and portfolio volatility.

He is a regular speaker on HoweStreet.com, and the FinancialSurvivorNetwork radio shows. Chris was also featured on the cover of AmalgaTrader Magazine, and contributes articles to several leading financial hubs like MarketOracle.co.uk

Disclaimer: Nothing in this report should be construed as a solicitation to buy or sell any securities mentioned. Technical Traders Ltd., its owners and the author of this report are not registered broker-dealers or financial advisors. Before investing in any securities, you should consult with your financial advisor and a registered broker-dealer. Never make an investment based solely on what you read in an online or printed report, including this report, especially if the investment involves a small, thinly-traded company that isn’t well known. Technical Traders Ltd. and the author of this report has been paid by Cardiff Energy Corp. In addition, the author owns shares of Cardiff Energy Corp. and would also benefit from volume and price appreciation of its stock. The information provided here within should not be construed as a financial analysis but rather as an advertisement. The author’s views and opinions regarding the companies featured in reports are his own views and are based on information that he has researched independently and has received, which the author assumes to be reliable. Technical Traders Ltd. and the author of this report do not guarantee the accuracy, completeness, or usefulness of any content of this report, nor its fitness for any particular purpose. Lastly, the author does not guarantee that any of the companies mentioned in the reports will perform as expected, and any comparisons made to other companies may not be valid or come into effect.

Chris Vermeulen Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in