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Did Fed Realize Its Policy Error? Currencies Think So

Published 08/01/2018, 10:32 AM
Updated 07/09/2023, 06:31 AM
AUD/USD
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NZD/USD
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CAD/USD
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DX
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The market is sensing a major turn.

As I’ve noted before, the currency markets are the largest, most liquid on the planet. As such they sense changes first.

With that in mind, consider that the “inflation” currencies are showing a major turn in the USD.

First and foremost, the AUD/USD pair looks to have bottomed. We have a clear bullish falling wedge formation being broken to the upside. We should expect a retest of former support (red line) at the very least.

AUD/USD

Next up is the CAD/USD pair (another inflationary currency pair). Here again we have a bullish falling wedge pattern breaking out to the upside. Even better, we HELD support (red line) here.

CAD/USD

And finally, we have NZD/USD, where we have yet another bullish falling wedge pattern breaking out to the upside with support (red line) being held.

NZD/USD

One of this alone is significant. But all three taken together STRONGLY indicate that the USD is prepared to roll over.

Again, we’re talking about the MOST sensitive markets on the planet signaling in three different ways that an inflationary move/weak USD is about to hit.

This tells us the Fed is about to “walk back” its tightening schedule. And those who are prepared for this, will see MAJOR gains.

This is THE BIG-MONEY trend today. Already the financial system is showing signs of it. And smart investors will use it to generate literal fortunes.

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