by Alexander Stefanov
CryptoDNES
Jeffrey Gundlach believes the greenback is tiptoeing along its final line of support. In a recent webcast, the DoubleLine Capital founder highlighted a chart that links the dollar index’s 2011 trough near 72 to its 2021 low around 89.
That diagonal has contained every bout of weakness for fourteen years, yet the DXY now hovers just above 98—barely one point above the level that, in Gundlach’s view, would inaugurate a bona fide bear market.
The billionaire bond investor noted the index’s long-running pattern of lower highs that dates back to the Plaza Accord era. If the current floor at roughly 97 gives way, he projects a spiral that could drag the dollar below its 2011 nadir, amounting to a decline of roughly 25 percent.
“That would mark the real beginning of a dollar bear market,” he told listeners, calling the prospect “surreal.”