Can Anything Slow U.S. Dollar's Strength?
Chris Kimble | Sep 13, 2022 02:42PM ET
The U.S. dollar is strengthening alongside rising interest rates. In fact, both are rocketing higher as inflation takes root and the European economy and the euro weakens.
Today we look for clues via the long-term weekly chart of the U.S. dollar Index.
As you can see, King Dollar has been so hot that it has rallied over 20% in 70 weeks. This puts the U.S.-backed currency in an overbought zone last seen when prior highs took root.
We can also see that the U.S. dollar is testing its prior uptrend line that has been strong resistance since 2009.
Will this overbought resistance line slow the U.S. dollar down? And will that also mark a high in interest rates? Americans sure hope so. If not, more trouble ahead.
Stay tuned.
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