Jeffrey Gundlach: The next dollar move will be down

According to Jeff Gundlach, founder and CEO of Double Line Capital, the next major US dollar move will be in the downward direction. Gundlach expects the greenback to close the year with a fall.

As far as stock markets are concerned, Gundlach commented that global stock markets will suffer if the problems in emerging markets get worse.

"I will not invest more in the SP500 as the whole index growth is driven by several shares," Gundlach said.

"If investors are targeting stocks, it is good to look at emerging markets where the growth potential is much greater."

In support of Gundlach's opinion, the current Price Action clearly shows that investors prefer to sell their dollars against major currencies. The star is CAD as the NAFTA negotiations are progressing, and the Canadian bulls take full advantage. Given this, and following a 50% Fibonacci test of the main trend adjustment, the Dollar Index is preparing for a new bearish momentum with a first goal, a support zone test of about 94.00, formed by a basic horizon and 38.2% Fibonacci correction of the main trend. In addition, DeMarker points down from an over-purchase zone, and Sequential counts down 3 - the downward pulse is still in its infancy.

Source: FxLive

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