The Dollar Index Breaks Down, Resumes its Larger, Dominant Downtrend

We have discussed in the recent past that when the Dollar has a pronounced, dominant directional trend from January into the Q3, and there is a failed counter-trend rally, the dominant trend trend nearly always reasserts during Q4 into year-end.

If this year's profile follows such a scenario, then DXY weakness off of the 10/27 and 11/07 highs at 95.15 represents the initiation of a new downleg within the dominant downtrend that began in Jan. 2017, which should press DXY to new lows beneath 91.01 towards 88.30/00

11 22 17 DXY Day GIF
11 22 17 DXY Day GIF

  • Action-Oriented Trade Set-Ups in Stocks & ETFs
  • Macro Analysis of the Broader Markets
  • Detailed Technical Guidance for each Trading Idea
  • Live Interaction w/ Mike & Our Member Community
  • And Much, Much More!
Join Now! - Special Offer!
Veteran Wall Street analyst and financial author, Mike provides detailed and timely analysis and trade set-ups on a range of markets. Read more...

Have Mike's “Out Front” morning analysis delivered FREE to your email inbox twice weekly!