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: Â Currently net long 52.6k, up 277.
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Author may hold a position in mentioned securities at the time of publication. Â 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.
