Dollar May Find Better Traction as Liquidity Fills Out in September
Technical Forecast for US Dollar: Bearish TALKING POINTS: On the heels of the failed inverse head-and-shoulders break in August, the 95 neckline break stalled Liquidity likely played a crucial role in preventing progress, but September historically brings volume Retail FX traders are net short Dollar versus the Euro and Pound . See speculative positioning here . Those trading the Dollar recently have likely been frustrated by the lack of projection from what are otherwise convincing technical breaks from the benchmark currency. On August 10th, the DXY Dollar Index earned a charged bullish break above 96 which cleared both the midpoint of the 2001-2008 range still in place and the ‘neckline’ on an inverse head-and-shoulders (H&S) pattern that had formed over the preceding 13 months. Despite the serious credibility this setup would otherwise carry, the market’s climb quickly stalled and fell back into range with the resonance of a fa...
