The Power of the Pattern suggested to cover Dollar shorts as the Dollar looked to be breaking resistance in the chart below, posted on 2/3- (see post here)
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What a surprise???? The Dollar was hitting the top of its rising channel/rising wedge, way too many investors become bullish on the U.S. Dollar, reflected in the left hand chart below and the Dollar falls in price below at (1). Sentiment data from Sentiment Trader.
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The breakout from resistance at (2) and the growing number of Dollar bears, is a positve for the U.S. Dollar!
Speaking of sentiment…Is it a surprise to see investors growing bearish on the Dollar about the time that the Rydex Cash to asset ratio is hitting one of the lowest levels in the past few years? (see post here)
Hey Chris –
Viewing the USD chart you post combined with sentiment, it’s hard to believe that I am seeing bullish triggers on Brent, Lumber and Platnium this weekend (weekly charts).
Hmmm….