Dollar Index and Emerging Market have Inverse Relation between them, If one goes up then other will go down, and this movement will affect many emerging Markets of world. Right Now Dollar Index in Stage of Top Reversal Pattern, So if that get confirmed then Dollar Index will go down & Emerging Market Index rally will be there soon.
The U.S. Dollar Index is an index (or measure) of the value of the United States dollar relative to a basket of foreign currencies, often referred to as a basket of U.S. trade partners’ currencies. The Index goes up when the U.S. dollar gains “strength”. Dollar Index short form for Trading is “DXY”.
Emerging Market Index you can Track as “MSCI Emerging Market Index”, there is Emerging Market Asia Index also, but that is not of any use, Because We have to check Main Emerging Market of world not for Asia.
This Dollar Index Rally or fall have major Impact on Commodities also like Metals, Gold, Silver. So you can track these commodities also to get some more experience.
Below is the Comparison Between Dollar Index and Emerging Market Index.
Now In below Chart you will get comparison, How Rally in Dollar Index DXY leads to Fall in EM (Emerging Market).
As per today, there is top reversal pattern in Dollar Index but see Dollar Index always lead the way, That means Emerging Market Index will take time to show some Break Out Pattern.
Top Reversal Pattern in Dollar Index: Head & Shoulder, which means that asset will come down after confirming a proper Breakdown from Support line.
Weekly wise Bullish Channel Breakdown is near, Because On Daily chart when Head & Shoulder get confirm on Monday then this Weekly wise Bullish channel also get break on Weekly basis.
It’s a starting point for Fall of Dollar Index and Starting of new rally for emerging market, Don’t expect very huge rally, this time many news are also there, so slow progress will be there.
Emerging Market Index already made a Big Bullish Engulfing on Monthly charts, but in slow process it will try to touch 56-58 levels, which is nearly 8-10% from Yesterday close of 52. Below Chart Attached.
It may be coincidence that same time when Dollar Index showing Top Reversal Pattern and My system Generated a Buy Alert for Nifty for potential Target of 12400-12900. I will go with my System which i made after continuous learning for 7-9 years.
Few Weeks Back Brazil came under my radar (Brazil also an Emerging Market). There was a trade for 5% return, and DAX (German Index) was also there as per System Buy alert.
If you have any doubt Regarding System Trades then you can check these trades, which i have shared in last 4 weeks, 100% Profit Accuracy. 
We can only predict chart, We can’t predict news, so any bad news can change all things from Chart. So Trade/Invest according to your risk profile.
1 Comment
As always a new and interesting take from you end. Well no one doubts your system, after all it is built basis all the experience you had on stocks markets not just Indian markets but also global markets for almost a decade now. I remember vividly, an interesting report on Global markets that you had posted on Sep 9, 2018 , things panned out similar way.
Thanks for enlightening us at regular intervals with such articles. Always eager to read your articles!