This US dollar index has just pushed to a new record high this morning! This is not what the Gold experts want, as a rising dollar is not good for gold which has now responded with a price crash of $38! My Market Vane Report shows that about 74% of the traders are in a bullish mood. This is pretty decent but this not at a wild extreme just yet. Even the commercial hedgers were net long with last Friday’s report, but they can switch just as fast.
I think the US dollar is in a bigger bull market than we can all imagine at this time. At this time I’m counting the entire US bullish move that started in 2008, as a single diagonal wave structure, which allows for overlapping wave structures. As the US dollar poke higher, we can check the Euro and see that it is plunging. There are a few other currencies that travel inversely to the US dollar and our CAD is also on that list of 6 currencies. The Australian dollar is not on that list but runs inversely to the US dollar as well.
In order for this rally to be a bear market rally, then 8 months of bullish action must get retraced! This is not going to happen this year or even a decade from now. To confirm that the USD is in a bigger bull market than what investors realize, it has to break out and create a new record high. This high was in December 2016 at the 103.600 price level.
Just eyeballing the weekly charts, we are close to about halfway to this target.