The US Dollar Index has spent the last year trending inside a rising wedge formation, it broke this trend recently and has been falling ever since. The short term target is 92.3 based on where the trend started, in other words a complete trend reversion is on the cards. This perfectly coincides with, and is confirmed by, a decisive breakout higher in the price of Gold/USD.
A new evolving theory states a risk-off environment due to global recessionary headwinds may not favor the US Dollar this time around as it has traditionally done. Instead the US Dollar will lose it's status as a safe haven asset due to historically easy monetary policy and rising inflationary fears moving forward. This theory also supports Golds recent break out in price as investors become more partial to Gold over US Treasuries.
Disclaimer: This is not financial advice merely my opinion.
A new evolving theory states a risk-off environment due to global recessionary headwinds may not favor the US Dollar this time around as it has traditionally done. Instead the US Dollar will lose it's status as a safe haven asset due to historically easy monetary policy and rising inflationary fears moving forward. This theory also supports Golds recent break out in price as investors become more partial to Gold over US Treasuries.
Disclaimer: This is not financial advice merely my opinion.