US Dollar Forecast – Undercut Low Complete

The Dollar reached a low of 92.14 later that day and immediately reversed. Wednesday’s bullish engulfing candle supports an intermediate-degree bottom; expect a 4 to 6-week rebound.

DOLLAR CHART: The Dollar collapsed over 10% after spiking to 103.96 in March. The subsequent 5-month decline is rapidly losing momentum, and a multi-week rebound is likely. Closing above 94 next week would establish our rebound target.

Precious metals and miners should decline into their 6-month lows as the Dollar bounces. That should present an excellent buying opportunity in September for anyone looking to own gold. Longer-term, the Dollar outlook is poor as the government will have no choice but to devalue.

AG Thorson is a registered CMT and expert in technical analysis. He believes we are in the final stages of a global debt super-cycle. For more information, please visit here.

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