The only bullish thing going for the dollar is the bearish sentiment approaching extremes. It may still go on for a while. Back in 76.xx tonite. Could retest lows or head for 74 now. I have a small position in UUP and I wonder to myself why.
I have a small position in UUP and I wonder to myself why. <<
Hedge funds are trying to pump it all up again and crowding into what has worked (PMS, QQQQ, Thailand, Columbia, etc., etc)--there is no way you can time a leveraged collapse of their short dollar positions. There are worse places to be-- try something like VXX this morning :)!!! So many people have been crucified in something like that over the past year trying to call a bottom to the market. When it finally happens there will be no doubt and no need to test any levels :). have a wonderful week.
If its putting in a tradable bottom here then a test of the recent low is a useful part of the process.
Eur testing 140 resistance again, aud almost at par, and usd sentiment approaching fuggetaboutit, you can make the case.
Interest rates should begin to rise now. The Chines did it last week. Poland will hike interest rates the coming week.
It looks like short term interest rates in the US are beginning to rise.
This should boost the USD.