USD trading below its own 40 week moving average. A break of this support could easily lead to further losses.

Bali news and views editor's comments:

Looks like the US dollar may be testing support levels and if the Democrats win the house and or the Senate a couple days there could be a major selloff of the U.S. dollar which has been artificially strong for some time.

This will be great news for Bali as many travel related expenses are priced in US dollars such as hotels airfares etc.

It will also be great for Bali real estate.

Let's pray for a major selloff in U.S. dollar and bring the Rupiah backup up in value at the same time.

From https://www.marketviews.com/rmg/the-dollar-is-key-in-the-short-term-but-the-big-cycles-are-turning-cautious/?utm_source=dianomi&utm_campaign=auto_ads


We think that the Dollar could be an important factor for global markets in the weeks ahead. Any further Dollar gains could easily tip markets over towards bear market territory, or a decline in the Dollar will help markets bounce from here. It is important, because as we show in chart 3 below, the MSCI World ex. US is testing a level of support that has been created over the last eight months, and it is trading below its own 40 week moving average. A break of this support could easily lead to further losses.





Chart 3 – MSCI World Index ex. US with 40 week moving average (green)


For months, we have been talking of a multi-month topping process, and this is what it looks like on a chart of a broad based index. Our preference at the current time is that this support will hold and that the Dollar could soften in the weeks ahead. We are therefore looking for the topping process to continue a little longer, and for central banks to tighten policy further (obviously led by the Fed) and for economic growth to remain reasonable. But the risks do seem to be growing and investors need to remain alert.