Charts: Dollar to Tank 10%; Gold, Stocks Going Higher

The dollar index could tank another 10 percent or more over the next six months, and the recent rally in gold can continue to push stocks higher, Chris Zwermann, global strategist at Zwermann Financial, told CNBC.

"For the dollar index I see the 66 (points) as the target. Not even longer term, I would say the next six month round about," Zwermann said.

The dollar has slumped across the board over the last seven months, with the dollar index falling from nearly 90 points in early March to around 76 points.

Zwermann expects the dollar to fall to $1.65 versus the euro.

"There's nothing negative to the United States if the dollar goes down in this way because it's the best tool to fight deflation," he added. Dollar weakness is also positive for US exporters, Zwermann points out.

The falling dollar has been one of the main reasons for the recent surge in gold, according to Zwermann. The precious metal hit record highs above $1,055 per ounce Thursday. And the move in gold is helping to push stocks higher, Zwermann said.

"Gold is more or less pushing the FTSE up. We saw the FTSE was more or less waiting for gold here at the higher level and now gold has broken out over this 1,000 (dollars per ounce) and gearing dynamic in direction 1,300 (dollars per ounce)," Zwermann said.

"So you can expect, if this correlation goes on, where these markets are moving to," he added.

- Watch the full Chris Zwermann interview above.

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