Poor dollar. Keeps getting beaten to a pulp. And no one seems more excited than Treasury Secretary Mnuchin who declared a weak dollar to be “good for the US”. Of course central bankers have been using the currency destruction method for years, but now the baton has apparently been passed to the US Treasury. Those European vacations will be pricey this summer. Unless the dollar makes a comeback.
Actually it can. All the public narratives aside the US Dollar has been following a very specific technical script and our own Mella has been following it for a while in our Premium Feed:
Than in early January:
She even posted publicly about it heading toward that trend line at 89:
If you don’t follow her yet on twitter, she’s an absolute must. But i’m biased. I’ve seen her incredible chart work for only 5 years ????
Today the US Dollar hit the 89 zone following Mnuchin’s comments.
US indices may challenge all of us, but technicals still work nicely on a lot of asset classes.
Here’s the updated chart (not including today’s 89 tag):
What does the chart suggest?
It suggests the US Dollar is at a very key pivot here and to the extent that the incredibly overbought US rally has also benefitted from a dropping dollar, a reversal here could have larger implications than just the dollar.
Make The Dollar Great Again! ????