DXYGood day everyone! Don't forget to put your thumbs up and write your comment if you like the idea
Today, in addition to technical analysis of the dollar index, I would like to consider the situation with global liquidity (that is, the need for this DXY).
In order not to be distracted later, let's immediately see what is happening in our technical system. Here, the main magnet still remains in the red zone at the 117.5-118.2.
It is very difficult to calculate what structure the price will go there, but it is highly undesirable to break through the yellow trend exponent for growth.
The first bearish zone is 105.5 - 106.2.
Now let's talk about current liquidity.
1) As Bank of America reported in August, more than 15,000 US companies posted losses, the highest since the 2008 crisis.
That is, in the cycle of liquidity compression (shrinking the balance sheet and increasing the cost of money due to an increase in the interest rate), there is not enough cash, while at the same time selling off assets means fixing losses, which can negatively affect the balance sheets of financial companies and their creditors. The first of the big ones to experience this problem was Credit Suisse.
DISCLAIMER:
The opinion of the author may not coincide with yours! Keep this in mind and consider in your trading transactions before making a trading decision.
