US Dollar Index – July 26, 2023

Well, we are hearing (once again) about the death of the dollar as the worlds reserve currency and all that … that will probably happen but not just yet.

Either way, we have hit a VERY important support level on the USD. Measured moves make the world go around … we hit the measured move, the long term polarity trend line and a butterfly buy. Exactly.

So, little bit of a judgment day for the US Dollar. I find it hard to “see” that the down more is over simply based on “balance, form and proportion” BUT this could be a MAJOR low in the USD. Go figure …

I’ll wait for the first BUY PATTERN to emerge and see how the dollar reacts to that …

For now, watch the downtrend line from the old high .. a breakout (daily close) above that trend line will be a good hint that probability is shifting to a big dollar low.

For now – the patterns worked – but I’m going to watch and see how this plays out.

I’m currently LONG the USDJPY via an ETF so a strong dollar doesn’t necessarily fit the USDJPY narrative I’m working w/ .. even though the USDJPY is only 14% of the USD Index (majority weighted in EURO) it still has more weighting that the USDCHF and the GBPUSD. So, this is an interesting one – for sure.

Author: BART

BART is a CMT and an expert a "advanced" pattern recognition used w/in the intermarket analysis discipline. He's also an accomplished Business Development Executive providing solutions to a myriad of business markets.

Leave a Reply

%d bloggers like this: