Is U.S. Dollar Nearing Bottom? Or Is It Different This Time?
Chris Kimble | Aug 05, 2020 01:54PM ET
The U.S. dollar ran into a perfect storm in 2020: a pandemic, an easy Federal Reserve and trillions of dollars in government stimulus.
The result has been a steep decline in the greenback.
Looking at today’s chart, however, suggests that the U.S. dollar may be nearing a bottom. That is if recent history proves true.
The dollar is testing its nine-year bullish up-trend support at (1) and U.S. dollar bulls are disappearing. In fact, investors are the least bullish on the U.S. dollar (20% bulls) since 2011 at (2). Notice that each time the dollar tested support with few dollar bulls, it rallied higher.
Time for a rally? Or will this time be different?
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