The U.S. Dollar just had the 6th best quarterly return in the past 34 years! (See post here)
CLICK ON CHART TO ENLARGE
The strong rally in the Dollar has taken it up to monthly falling channel resistance (lower right chart) with 89% of investors bullish at this time. Before the 90-day rally less than 25% of investors were bullish.
While the US$ has rallied, other currencies (Euro, Yen, Australian Dollar) have declined large percentages. As you can see few investors are bullish the Yen or the Euro as each is at key technical levels.
Could we be near a price point/sentiment set up where the Currencies could change directions?
When it comes to portfolio construction, being on the right side of the currencies forces is important. Keep a close eye on these, as they tend to influence many assets!