The US Dollar is strengthening along side rising interest rates. In fact, both are rocketing higher as inflation takes root and the European economy (and the Euro) weakens.
Today we look for clues via the long-term “weekly” chart of the US Dollar Index.
As you can see, the King Dollar has been so hot that it has rallied over 20% in 70 weeks. This puts the Dollar in an overbought zone that was seen when prior highs took root.
We can also see that the US Dollar is testing its prior uptrend line that has been strong resistance since 2009.
Will this overbought resistance line slow the US Dollar down? And will that also mark a high in interest rates? Everyday Americans sure hope so. If not, more trouble ahead. Stay tuned!
This article was first written for See It Markets.com. To see the original post, CLICK HERE.