These are key developments that support further USD weakness, leading us toward today’s breakdown.
Thanks to sellers taking control of the market, today’s session is offering another critical piece of confirming evidence…
An oversold reading on the 14-day RSI.
Notice DXY never registered an RSI print below 30, even during the strong selloff last fall.
Wednesday’s oversold reading marks a significant shift in momentum. The bullish regime that has remained in place since the beginning of DXY’s parabolic advance in 2021 has lifted.
The dollar bears have gained control of the index.
It makes perfect sense.
Our bullish trade ideas for the euro, British pound, Swiss franc, and Canadian dollar are all working. These four currencies alone make up more than 80% of the dollar index.