UUP standing on the edge of a cliff…
All it needs is a little push…
It closed below daily cloud support today, but it’s possible to regain it tomorrow. Also, the 200 dma is literally right there. We’ve seen it time and time again—the USD dragged back from the edge to live another day….
I am going to go way out on a limb and say tomorrow, the USD is going to get slammed. I think Yen continues its nascent moonshot and commodities and silver get a very large pop–maybe silver tests its 50 dma tomorrow. Short term predictions are usually losers, but I have to say, the moment is ripe for the taking. Then again, maybe we have to wait for the March 18 FOMC or an announcement of QE to put the knife in USD.
This is 100% just a hunch and will possibly crystalize the notion that last week was the greatest shakeout you will ever see in your lifetime.
Maybe it does something like this…
DXY was close to 100 very recently (causing the wick on my domed Dollar chart). Since then… 99,98,97,96, now close to 95. ‘The USD has lost the single most important source of its over-valuation, a strong carry advantage,” he added, warning this could end a dollar uptrend that has lasted since mid-2018.’
That bit in quotes is from Alan Ruskin, global head of G10 FX strategy at Deutsche Bank