The USD is super bullish from the charts- parabolic U , no sight of any Christmas tree formation.
You can see Christmas trees close to in the aftermath of US recessions in 2000, 2008 and covid crash 2020.
And I am sure we will get a DXY Christmas tree in due time...maybe after 6 months. But can the DXY scale up to above $110 and even $120? If it does, it would be a considerable headwinds for AUD, and commodities including Gold. Much depends on whether the EU can keep pace with the US in rate rises- the EU is very hesitant to raise rates, because they are vulnerable. And the RBA can't keep pace too and probably does not need to as much.
I am not saying this because I want to see USD prosper and Gold crushed... I have digital Gold but its an observation alert. Just like I alerted the prospect of Gold breaking down earlier.
