The USDollar has been selling off across all other currencies in the forex market, while also the Dollar Index 90.30 -0.47%. The Greenback continues to devaluate, investors have been selling the USDollar, while investors do have to pony up more USDollars for the same stock; in other words, the depreciation of the USDollar makes investors losing purchasing power in the stock market as well as, in the economy with rising inflation 4.2%, in April, that with a depreciating USDollar will continue to grind.
The Dollar Index chart on a monthly time scale sees the Dollar Index trendline below the IKH Senkou A/B nuage, as a clear signal of a consistent downtrend. The forex market reacted with the Dollar Index trendline at the 100 months moving average with a heavy sell-off, the lagging span confirmed the downtrend by breaking below the Senkou A/B nuage, with the Tenkan line also providing the same sell signal with a bearish cross below the 100 months moving average, with a large double top pattern breaking down a bearish wedge. All technical indicators would confirm that further depreciation of the USDollar with the Dollar Index drifting lower toward the 200 months moving average 86.95, with the caveat that the USDollar could break down completely drifting below the 200 months moving average.