The US Dollar Index (DXY) fell last week following coordinated US–Japan intervention in the yen. The drop pushed DXY back below the 100.50 support/resistance level, marking the move above that level as a failed breakout.
Commercial traders of Dollar Index futures responded this week (per COT report data) by increasing their collective net short position. Looking back at other price tops on this chart, you may notice that when commercials do this—adding shorts after a downturn—there is a lot more downturn yet to come for the DXY.
Commercial traders of Dollar Index futures responded this week (per COT report data) by increasing their collective net short position. Looking back at other price tops on this chart, you may notice that when commercials do this—adding shorts after a downturn—there is a lot more downturn yet to come for the DXY.
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