The US Dollar Index reached its recent peak of 103.82 on the first trading day of the year, January 3rd:


US Dollar Index (Daily)

Since January 3rd we have seen a trend of lower highs/lower lows with increasingly shallow bounces. The US Dollar Index now finds itself at a key decision point in which a break below the ~99 level, which also happens to roughly coincide with the 200-day moving average, would potentially confirm that an intermediate/long term top was put in place at the beginning of the year. 

Sentiment also remains fairly buoyant on the Dollar Index despite the clear trend of lower highs and lower lows: 

This is a notable divergence and notice that most moves above 80 in the InvestUp Sentiment Indicator eventually result in a move below 30; we could be on our way down to bearish sentiment territory but there is still plenty of room to move lower. A weekly close above ~100 on the Dollar Index would be required to shift the current bearish technical picture. 


DISCLAIMER: The work included in this article is based on current events, technical charts, and the author’s opinions. It may contain errors, and you shouldn’t make any investment decision based solely on what you read here. This publication contains forward-looking statements, including but not limited to comments regarding predictions and projections. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. The views expressed in this publication and on the EnergyandGold website do not necessarily reflect the views of Energy and Gold Publishing LTD, publisher of EnergyandGold.com. This publication is provided for informational and entertainment purposes only and is not a recommendation to buy or sell any security. Always thoroughly do your own due diligence and talk to a licensed investment adviser prior to making any investment decisions. Junior resource companies can easily lose 100% of their value so read company profiles on www.SEDAR.com for important risk disclosures. It’s your money and your responsibility.