From the Desk of Ian Culley @IanCulley
The calls for a dollar top are growing louder as analysts claim the advance is overextended.
They’re right. But pushing further into overbought territory is exactly what parabolic rallies do. And many of the technical tools supporting the thesis that the dollar is topping do not apply.
In practice, mean reversion tools such as oversold/overbought conditions, price exceeding the upper bounds of a Bollinger Band, or the percentage gain above the moving average du jour are best used in trendless markets.
Does the dollar look trendless? Absolutely not!
Don’t let these data points distract you. Let’s instead put the current DXY advance into perspective by focusing on historical price action.
You need to have a subscription to access this content in full.
Log in or
subscribe
