I had been watching the dollar index and I was interested in the formation of a decent bull flag. However, instead of rallying, it got totally crushed this week. The DXY is interesting because is measures the strength of the dollar against a basket of other currencies. And all it takes to get "crushed" is other currencies strengthening more than the dollar, which is what has appeared to have happened.
Now, that said, it looks to have found support at a level that has served as support many times over the last year. I do still expect this to rally in the coming weeks and months, coinciding with a major decline in US indices.
Now, that said, it looks to have found support at a level that has served as support many times over the last year. I do still expect this to rally in the coming weeks and months, coinciding with a major decline in US indices.