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The U.S. Dollar has been hot of late, as it has rallied over 6% in 5 weeks.
Not only has the price of the Dollar moved a good deal higher, so has bullish sentiment, as the number of people favorable on the Dollar is reaching levels seldom seen in the past 4 years at (2).
If the U.S. Dollar is about to cool off a little, it could start to cool at resistance (1)!
If you consider resistance across the ’05, ’09 & 2010 peaks and the current rising line on your diagram above… they’d intersect at around 86.50 about year end.
Just after the US elections…
Does that become the next major ceiling on the dollar if it can break above current resistance levels?
Great question and comment!
Dollar bulls 78% and Euro bulls 24% at this time. Little reversal at this time to work off these crowded/uncrowded numbers?
Or do continuing Euro fears (panic?) power it through resistance… setting up for a potentially bigger reversal later in the year?
To key points in 10 years, both were important peaks…we will see.
Can policy makers really keep deflation at bay?
Will policymakers prime the pump to keep the deflation boogeyman at bay?
Chart question: There are only two points on the chart, and it goes back over a decade. Is it valid???