The US Dollar Is Nearing A Critical Level: (Must See Chart). By Gregory Mannarino
The US dollar is getting a lot of attention lately, and not just from alternative media sources, but the mainstream financial media as well.
In my opinion the meteoric rise with regard to the value of bitcoin and other cryptocurrency's is reflective of declining investor sentiment with regard to the US dollar. On the other side of this are those who believe that a dollar turnaround is eminent. Well is it?
I would like you to have a look at the chart below.
This is a six month daily chart reflecting the price action of the US dollar.
It is simple to see the during this six month time-frame the US dollar has been in more or less a steady decline.
I would like you to take notice to the purple line, this is the 50 day moving average. I would also like you to take notice of the blue line, this is the 200 day moving average. Now, I circled for you on the right side of this chart where these two moving averages continue to move closer together.
The fact that these two moving averages are moving closer together, and if this trend continues will converge, is very important.
The crossover of the 50 day moving average below the 200 day moving average is very significant.
If this trend continues, the 50 day moving average will move below is the 200 day moving average, and this is known as a death cross.
A death cross is seen as a bearish technical signal, which means that further losses are not guaranteed, but are likely.
If the trend with regard to the dollar continues, and this death cross does manifest itself what does it mean?
A continued decline in the dollar value will cause prices to inflate as the purchasing power of the dollar is lost, (inflation which could potentially reach catastrophic levels at one point).
In my opinion it also means that we will see The value of cryptocurrency continue to increase in value. Also, in a real market (for which there is none with regard to gold and silver) we would see their value rise as well.
So what's the take away here?
If the current downward trend with regard to the US dollar continues, and the death cross is realized, we should expect to see inflation, a rise in the value of cryptocurrency, and if we had a real market, an exponential rise in the value of physical gold and physical silver.
The real take away..
If the death cross is realized who knows how much further the dollar will fall.
Gregory Mannarino
Agreed. FIAT money crash is just a matter of time.
Statisticly life of currency last about 25 - 40 years.
statisticly every 120 years a solar flare hits earth and melts every wire with an electrical current running through it. Just saying, we are 50 years over due. diversify!!
I made a post on my blog with more charts to this.
https://steemit.com/dollar/@sjovmaiin/the-coming-fall-of-the-us-dollar
The 18 year cycle between the euro and the dollar is interesting!
Congratulations @marketreport!
Your post was mentioned in my hit parade in the following category:
Our dollars will be worth less than toilet paper. Gold silver, bitcoin, food, water, supplies stockpile now. They want to sink the dollar to bring in a global digital currency. This may be their opportunity. Thanks Greg. I welcome feedback.
Check out this post for more on the cycles of weakening US dollar and the current state of the dollar.
https://steemit.com/dollar/@sjovmaiin/the-coming-fall-of-the-us-dollar
Thanks for the reply and post. It dollar IS weakening and we need to be prepared. If only the Sheeeple we awake it would be a vastly different America.
There might be a period of deflationary recession/depression before hyperinflation.
Most people will not see the collapse coming until it smacks them in the face.
I agree with people having little cash to spend. The natural reaction with supply and demand would be deflation. Than with the federal reserve being filled with Keynesian economists their reaction would be to increase monetary supply to "fix" the deflation. Then the "fix" would get out of control before countering it.
Great information Greg! The clown show continues, for now.
Big time.
Greg, do you see gold and silver stocks decoupling from the stock market during the inevitable coming market collapse, or will all paper assets turn to dust?
Keep and eye on NAK. The EPA permits have finally gone through and partnerships being finalized. https://seekingalpha.com/article/4067455-northern-dynasty-minerals-offers-asymmetric-risk-vs-reward
Thanks again Greg for your insight.
Been closely following your work for quite some time, and
I just want to say thank you for all your fantastic work!
Bring it ON.
I agree. This whole thing is so twisted and distorted.
Ayup. Just sold my position in BGM:TSXV and replaced it with Silver Eagles...I'm out of the market and seriously into bullion. Let the games begin.
I have my UVXY waiting and ready.
what is UVXY?
never mind. found it is the ultra-short VIX.
Thanks Greg, been following your stuff for long time, days before the tie, and hairspray, lol. But you've been correctly nearly all the time, and so glad to see you finally come around on crypto currencies, or blockchain tech.
I hope you look more into etheruem tech, ethereum.org it's just tip of the iceberg for a massive bull market run. Must have, or etheruem based tokens (solid companies that is) that will add to ecosystem.
We are on verge of Web 3.0 and hopefully you take a little bigger look at this, Billionaire Mike Novogratz just said he put 10% of portfolio into blockchain tech in this video.
Billionaire Mike Novogratz has 10% of his portfolio in blockchain tech, he said in this video from other day.
I'm hearing the name etheruem more and more these days which has to mean something.
Yes, Ethereum is by far better than bitcoin in useage and development. Could write a book of use cases and corporate involvement. Bitcoin was amazing, but it's muddled with politics and lot of drama in foundation and community, on top of not embracing innovation.
Personally I see Etheruem overtaking bitcoin eventually as use cases are 1000x more. FYI it's still early to the party, wall st hasn't really even gotten involved yet, nor has average joe.
"and if we had a real market, an exponential rise in the value of physical gold and physical silver."
Sad, but true! On the positive side, it allows the little guys (like me) more time to accumulate more silver and the longer it takes to break the manipulation, the stronger and more violent the move up!
@marketreport: Very informative information thank you Greg! Interesting visual on those moving average and where potentially it may be headed. Upvoted you~ :)