US Dollar: Resuming it’s Bearish Trend?

The US dollar has been in a bearish mood lately, but it can still create another corrective pattern as well. 89 is just one rounded Fibonacci  numbers I use, and the US dollar has turned around that number before. Commercial traders are still net short, so chances of jumping into a huge USD bullish phase are low on my list. Wild counter rallies do happen and they can’t always be spotted before they happen.

Any decline in the US dollar for “any” fundamental reasoning, will help keep the bullish pressure on gold.  At least until the entire US dollar bearish move has completed. There are no contrarian indicators showing up,  that say we are at the bottom of a US dollar bear market.  We might get another “C” wave attack, that can force another leg up with the US dollar, but then I would bet that the commercial traders positions would also have shifted dramatically.

In the last few days, the declining  pattern has been a diagonal pattern, which could run out of steam in the short term.

This could be very slow going as well, so I will not report every little wave made with the US dollar cash index. Futures are leveraged asset classes which produce very wild moves. Futures are played in both directions creating these wild swings, which Bitcoin traders can’t really do. The lack of  short players in Bitcoin reduces the wild moves, otherwise the Bitcoin waves would display insane moves in both directions.