News surrounding Greenland is the main driver of financial markets today. As a result, we are seeing the implementation of the “Sell America” strategy: the share prices of US companies are falling, and the dollar is losing value against other currencies.
The risks of trade wars, NATO fragmentation, and a potential recession are causing the USD to lose its status as a “safe haven”, with capital flowing into alternative assets (confirming today’s rise in the price of gold to $4,700).
As a result, the dollar index is showing accelerating downward momentum today, having fallen to the 98.500 level.
On 12 January, analysing the dollar index (DXY) chart, we:
→ updated the descending channel (marked in red);
→ noted that its upper boundary showed signs of strong resistance.
At that time, we considered a scenario of an intermediate upward correction within the prevailing downward trend and suggested that this upward trajectory could eventually be broken by the bears.
Since then:
→ the price continued to fluctuate within the upward trajectory (shown by the blue channel);
→ but it was unable to hold above the upper red line.
Thus, today’s decline fully confirms the earlier assumption (completion of the intermediate recovery and a return of DXY values to the framework of the dominant downward trend), with:
→ the 98.79–99.02 zone (where supply strength had effectively broken support lines) potentially acting as resistance in the future;
→ an ambitious target for the current bearish pressure being the median of the descending channel.
