US Dollar Index
Since the US Dollar broke out above 102 in the middle of the month, it has essentially gone sideways within a box. That support – the 20-day moving average lies right there – still holds, but barely.
On Friday, in a long-legged doji session, it was tested – successfully. Earlier on Thursday, the 10-day was lost. A loss of both averages – probably only a matter of time – should begin a process of unwinding the overbought conditions the cash is in.
The cash had been rising since May this year. Post-election, the rally accelerated – up nearly six percent through December 20. Dollar bulls already expended a lot of buying power.
December 30 COT Report Data: Currently net long 52.6k, up 277.
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Author may hold a position in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.
