Looking at the USDX chart, if 101 level is breachedLook out below....Right now US$ is at 102.49 and dropping...
The only support level is in that 101 area...If that level does not hold , then the USDX should fall to the 97 level fairly quickly but should hold there for only a week or two. After that if the USDX falls below that 97 level, then the next strong support level is around 90...This 90 level is a much stronger support area that should hold for a while, maybe a couple of months but I think that 90 support level will fail and the US dollar will continue to drop and will probably fall to the low 80's...
I've speculated that the USDX would hit that 90 level probably in late April to late May/2023..
Of course, I could be totally wrong but the next few weeks should be very interesting for the gold market..
The Fed is definitely stuck between a rock and a hard place...If they continue to raise rates they will definitely cause collossal damage in the banking system and the financial system, but if they lower rates , they begin to fall behind in the fight against inflation..
The markets have priced in a drop of interest rates by one whole point by the end of 2023...So the market is basically saying the FED has begun the pivot to lower rates...