There are just some of the Key points on the chart but the real trick is to watch the RSI here ( the blue line above the US inflation index at bottom of chart)
The US inflation indicator shows RED after 1995, when inflation is above the 2% dictated by the FED as Good. Inflation peaks are marked on chart with thin solid vertical lines.
Compre these to RSI and PA levels
The USA was in an inflation explosion from 1979 to 1984 and it reached a height of 14% before turning down
The Thing to note here is the value of the $, as inflation rises, so does the value of the $, logically I suppose.
As inflation is fought with higher interest rates ,the $ becomes a money earner, for the banking industry and savers
Look at the RSI, See how it rises, Ranges and then eventually dips
Then RSI Ranges, as does the $ till we get to July 1995 and the Barings banks Saga.
This was a banking collapse and yet, Look. the $ GAINS value and RSI drives higher, Tops out and Drops,
Then again in 2008, another banking crash, this time Leman Brothers cause a Loan repayment Surge, bit like a bank run
Again, at a time of Stress, the $ Pushes up in value, RSI Runs high and Tops
Since then, RSI has remained mid / high and topped out again in July 2022
Since then, it has retraced and has recently tried turning again
But now, the $ has less demand globally as Countries around the world Stop using the $ as international trading currency, including Oil
So the question is, Where for the $ now
Technically, It has been up in the higher range RSI for a long time, inflation is High and as we can see from the past, PA tends to drop
The US inflation indicator shows RED after 1995, when inflation is above the 2% dictated by the FED as Good. Inflation peaks are marked on chart with thin solid vertical lines.
Compre these to RSI and PA levels
The USA was in an inflation explosion from 1979 to 1984 and it reached a height of 14% before turning down
The Thing to note here is the value of the $, as inflation rises, so does the value of the $, logically I suppose.
As inflation is fought with higher interest rates ,the $ becomes a money earner, for the banking industry and savers
Look at the RSI, See how it rises, Ranges and then eventually dips
Then RSI Ranges, as does the $ till we get to July 1995 and the Barings banks Saga.
This was a banking collapse and yet, Look. the $ GAINS value and RSI drives higher, Tops out and Drops,
Then again in 2008, another banking crash, this time Leman Brothers cause a Loan repayment Surge, bit like a bank run
Again, at a time of Stress, the $ Pushes up in value, RSI Runs high and Tops
Since then, RSI has remained mid / high and topped out again in July 2022
Since then, it has retraced and has recently tried turning again
But now, the $ has less demand globally as Countries around the world Stop using the $ as international trading currency, including Oil
So the question is, Where for the $ now
Technically, It has been up in the higher range RSI for a long time, inflation is High and as we can see from the past, PA tends to drop