The US Dollar chart may look “way overbought” at this moment…but it’s also breaking out to 4 year highs. One thing we have learned from trading currencies for nearly 40 years is that trends go WAY FURTHER than you think is reasonable or possible…if you can’t stay long the Dollar just stand aside…don’t get short the Dollar except to try to capture very short term corrections.
We have been relentlessly bullish the US Dollar for over a year… it closed at 4 year highs last week…it has gone nearly straight up for the last 2 months…the Yen is at 6 year lows…the Euro is at 14 month lows…the Dollar is rising against nearly every single currency…commodities are tumbling as the Dollar rises…gold has dropped ~$125 in the last month…silver is at 4 year lows…the CRB commodity index…which prices a basket of commodities in terms of US Dollars… is at 4 year lows…down ~30% since the Dollar began a multi-year rally in 2011.
…read Victor’s full analysis of all the key markets that are turning by clicking on his title below:
7 Charts that Turned Lower the 1st Week of Sept and 1 that is Just Starting – Sept 22
