On Tuesday I asked the question as to whether the US Dollar had topped. And as I shared, I was of the opinion that it was far too early to make such a call as the greenback had set a fresh high just last Wednesday. It’s truly amazing how price action can change sentiment so quickly…
I pointed out a couple of spots of key support in the US Dollar and notably, these were taken from resistance that was in-play just a couple of weeks earlier. When the British Pound collapsed and GBP/USD went spiraling, DXY spiked-higher as GBP is 11.9% of DXY. So what looked like a massive reversal was really rooted from recovery moves in EUR/USD and to a much larger degree, GBP/USD.
