Dolla Dolla Bill Y'all
I think a pullback in the dollar is imminent. It has been a perfect storm in the geopolitical world with inflation, talks of war, tough financial decisions by countries that will likely have a long-lasting effect on their financial futures. Now unless the world really goes to crap and financial systems collapse in the next week, I am unsure how much higher the dollar can go for now. As you can see UUP the Dollar Index has aggressively broken out of its channel with multiple gaps up on the daily. The repeating pattern I see is big up then a smooth woosh down into accumulation. I'm not much of an RSI guy but the pattern is once it gets overbought you can see what happens. Now I don't think the dollar will collapse yet but definitely positioning for a pullback in the near term. This obviously would-be short term bullish for stocks and risk on assets. I definitely don't think this is the highest we will see on the dollar the worst is yet to come imo but nothing goes straight up without some pullbacks. All just my opinion not financial advice my friends.
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