King Dollar has been on a role since last summer, up over 20% in less than a year. When looking back on the US$, the rally has been rare and nearly historic. Majority of the rally took place inside the steep rising channel above. Over the past month the US$ might have put in a double top. Over the past few days, the US$ has slipped a little below rising support at red arrow above.
On 3/31 I shared the chart below with members. This chart highlights times when the US$ is up over 12% from the prior year and created a 2% or more reversal pattern, on a monthly basis.
As you can see from the table above, this type of reversal pattern after a strong rally has only happened 4 times in the past 30-years and few times has the US$ made much upward progress after this type of situation.
Joe Friday Just the facts- King Dollar did something rare last month (reversal pattern after a big gain) and is a fraction below steep rising support. Should the US$ train slow down or weaken some, a few commodities could catch a bid and push them higher.