While the US Dollar Index remains above 100, it is possible that King Dollar may have put in a top.
And not just any old top…but a monster top.
Of course, we are having some fun here, but King Dollar’s reversal late last year has seen follow-through selling to the tune of a 10% decline (see monthly chart below).
This month the US Dollar is attempting a counter-trend rally, bouncing off dual support at (1), including its 23.6 Fibonacci and lateral support.
If this monster top holds true, we could see a counter-trend rally back to 106 at point (2) before heading much lower. This could get interesting…stay tuned!