The Most Important Chart in the World Is Getting Uglier By the Day

Phoenix Capital Research's picture

The $USD continues to drop like a brick, having taken out critical support in the near-term.

This is just the beginning. It's only going to get worse from here.

Here’s the $USD’s chart running back 40 years. I call this the “single most important chart in the world,” because how the $USD moves has a massive impact on all other asset classes.

As you can see the $USD broke out of a massive 40 year falling wedge pattern. This initial breakout has failed to reach its ultimate target (120) and is now rolling over for a retest of the upper trendline in the mid-to low-80s.

Put simply, this chart is telling us that the $USD is going to be collapsing in the coming months.

The implications of this are going to be tremendous for the financial system. US corporate profits will be increasing particularly for large multi-national companies. Emerging Markets will outperform.

And most importantly, the $USD's collapse  is going to be like rocket fuel for inflation trades. 

If you’re not taking steps to actively profit from this, it's time to get a move on.

We just published a Special Investment Report concerning a secret back-door play on Gold that gives you access to 25 million ounces of Gold that the market is currently valuing at just $273 per ounce.

The report is titled The Gold Mountain: How to Buy Gold at $273 Per Ounce

We are giving away just 100 copies for FREE to the public.

As I write this, there are 39 left.

To pick up yours, swing by:

https://www.phoenixcapitalmarketing.com/goldmountain.html

Best Regards

Graham Summers

Chief Market Strategist

Phoenix Capital Research

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Montani Semper Liberi's picture

 I would tell you guys about some gold that is valued at $273 an oz, but it's a secret.

 I will tell you this, it does involve some back door play, so it's a win/win in my book.

mtl4's picture

Put simply, this chart is telling us that the $USD is going to be collapsing in the coming months.


Funny, the breakout to me says exactly the opposite, USD will likely bounce off the top of the wedge and head upwards very strongly again.

Pernicious Gold Phallusy's picture

A manufacturing friend told me his sales outside the US rise when the dollar declines. So why not $1 = 1 eurotrash cent?

Aireannpure's picture

Russia China Oil deal, Bit coin, what else could be pressuring our dollar? 

SoDamnMad's picture

The price of a barrel of oil is down, has been down, will stay down so Russia has to increase volume to make up the difference in it's budget hence they have a deal with China. China has been rolling over the Russians big time.  The Russians are financing the whole gas pipeline to China in return for selling gas CHEAP. That is not a win-win.

ToSoft4Truth's picture

Earlier today Market Watch was telling us:

 

"China preps sale of $2 billion dollar-priced bonds, first since 2004"

 

China is buying dollars. 

Jack4952's picture

About the U.S. Dollar Index (USDX):

By the way, there is also a "Euro Index", etc.

1.) It is TRUE that the USD has lost about 10% of its "purchasing power" in the last 10 months or so. You can verify this on numerous financial web sites. One can find the vaues for the: U.S. Dollar Index; the Euro Index, etc. at www.investing.com.

2.) You can get the RAW NUMBER or CHARTS for one day up to many years.

3.) So WHAT is the U.S. Dollar Index (USDX, DXY)? Instead of comparing currencies one-on-one (USD/GBP, etc), the USDX is an index (or measure) of the value of the United States dollar relative to a basket of foreign currencies.

BUT:

4.) The USDX is uses a "basket" of only SIX currencies - all from U.S. trading partners.

5.) It is a weighted geometric mean of the dollar's value relative to other select currencies:

USDX goes up when the U.S. dollar gains "strength" (value or "purchasing power") when compared to ONLY SIX (6) other fiat currencies. WHY it is not expanded to include many other currencies is unknown to me, since (after each curreny was "weighted")  that would be easy enough to calculate.

6.) Its usefulness? It gives one an approximate value ("purchasing power") of the USD compared to 6 other currencies, instead of just one - so in a "currency war" I presume it is harder to manipulate. (??????)  And if ALL 6 of the countries AND the U.S. are DEVALUING their currencies at the SAME TIME (but at different rates), it is an indicator of who is devaluing the fastest.  

 

PrezTrump's picture

Yes they are shilling GDX, and although they may be correct that it is time to go long, their line of reasoning is amoungst the stupidest shit ive ever heard.

Save you 5min and a burner:

https://www.phoenixcapitalmarketing.com/goldmountain.pdf?inf_contact_key...

HowdyDoody's picture

Another interpretation - if you raise the right hand end of the upper trend line to cross the 2017(?) peak, and look back to the middle peak, it didn't make the trend. So it looks like something unusual might have happened in late 2001. Offhand, I can't think of anything unusual around that time, though.   /sarc

 

Village-idiot's picture

I tried to find the charts in the article above.   I couldn't find them anywhere.

Without a confirmation that they exist, just as they are shown above, I call the whole article BOGUS!

PrezTrump's picture

if its written by phoenixcap then yes

TannyDanner's picture

That's some funny logic. How about just visit stockcharts.com since that's where his charts came from?

Nobodys Home's picture

That 40 year falling wedge could be superimposed on top of the falling wedge showing the value of the dollar 1913 to present. What a coinkydink!

Iconoclast421's picture

That chart is nothing but a comparison of multiple different fiat currencies, all backed by nothing. It means nothing. And besides, its been flat for the last 30 years, so even if it did mean something it would still mean nothing!

peippe's picture

This is no problem.

I like cantonese food.

StychoKiller's picture

Sichuan/Mandarin FTMFW!!

Cautiously Pessimistic's picture

Nope, because I bet if they will just go ahead and put Harriet Tubman on the Twenty, then our currency value will assplode higher.  Just sayin.....

Pernicious Gold Phallusy's picture

Harriet can't be on the 20. Andrew Jackson is on that and he was a Democrat. Oh wait he was a slave owner and slave dealer too. Oh wait he shit-canned the Second Bank of the United States and paid off the national debt. I be so confuse.

Squid Viscous's picture

dey waitin fo Oprah to die, then she be on da twenty sho nuff

gm_general's picture

I missed why $120 was the ultimate target and why not hitting it already is a death sentence that determines it will fall back into the former trend. Anyone have the answer to this? Because ultimately $USD broke out of that downtrend when the Fed dropped QE - it was a near immediate skyrocket in the dollar right after QE went to zero. Now we have what looks to me like a megaphone forming above that trend where the $USD price oscillates more and more each swing. Does it mean it will reenter the down trend? I guess we will see soon. BTW it seems odd I posted in the comments here about this $USD trend and today this shows up on ZH. 

sosoome's picture

"This chart is telling us the that the $USD is going to be collapsing in the coming months"

How? The chart shows the $USD is testing it's trend line breakout. How do you know it won't hold?

atomic balm's picture

my chinese restaurant puts charts in the fortune cookies.

Pernicious Gold Phallusy's picture

Manufacture by Hurricane Noodle Company

TradingTroll's picture

Yeah, right. Collapse of the dollar. If it doesnt happen, will I get a refund on my subscription...because its not happening, not now or in the coming months anyways. Maybe 2020 or later...

aliens is here's picture

Yes and we should all buy gold right? Go F yourself Phoneix Capital. I am sick of this doom and gloom talk. I know we fked but I am sick of gold peddler or whatever you are selling.

Mr Hankey's picture

Systematic full-spectrum domination and extermination can be profitable  as long as you're not the hoi-polloi. My wife's 2 well-deserved vacations a year costs 2oz gold.About what we can save per year .Which is eaten up by emergencies. Rest assured, I'm not gonna be buyin gold.

ThrowAwayYourTV's picture

One thing I learned long ago was that, "Nothing gets better it only get worst with a little relief here and there."

Honest Sam's picture

I'm going to save this dire dollar prediction  and in November I'm going to look at it again.  If you are right, I will send you one dollar.

If you are wrong, you will send me a million American dollars or gold equiivalent, AND you will cease and desist your prognosticating forever.

Deal? You robot.

HANGEMHIGHER's picture

Uncle scams toilet paper.

syzygysus's picture

Darn, this means higher prices for French Cheese.

Mr Hankey's picture

PHX capital?  sounds legit.I know they aren't just trying to sell me something.

Quasimojo's picture

Learn to relish Velveeta like a good Third-World citizen.

Honest Sam's picture

Relish and Velveeta is a British staple, along with beans on toast, kippers, and poverty.

Pernicious Gold Phallusy's picture

Vegemite. you left it out of your list

Paul Kersey's picture

Instead of putting a tariff on imports, the financial engineers inflate import prices on the debt-serfs by devaluing the USD. Meanwhile, those same wealth extractors call China the currency manipulator.

Village-idiot's picture

I believe the word you're looking for is "hypocrites".

sodbuster's picture

Time to get long the dollar?????