The move is in - easier to go long at this point than try to short the US Dollar or by proxy every other currency pair featuring the USD. At worse you know where to put your stops.
After today's move away from the precipice the decades long trendline continues to hold.
DXY
The mainstream media in this case Reuters has been reporting this for months. This record short position is the fuel longs need to take the USD higher.
If the US Dollar does move higher expect Silver and Gold to come off.
For now if you're looking to go short - I would let the trendline break before entering.
NEW YORK (Reuters) - Speculators’ net short U.S. dollar positioning soared to the highest since August 2011, according to calculations by Reuters and U.S. Commodity Futures Trading Commission data released on Friday.
The value of the net short dollar position hit $24.27 billion in the week ended July 28, from net shorts of $18.81 billion the previous week.
Reporting by Gertrude Chavez-Dreyfuss July 31, 2020 / 4:23 PM
Most of the retail market is short - The SPX & Nasdaq are at all time highs - and leadership is with fewer and participants. Stocks roll over the dollar goes up. 200 point correction on the SPX is healthy, lots of gaps to fill. means the US Dollar goes up. They need the shorts to fuel the rise - they have buy someones inventory.
Market has completely discounted the election - and the volatility this will cause.
Everyone is back to work next week - expect a shake up.
Speculators are short - Fund managers are long.
CFTC-EQUITY FUND MANAGERS RAISE S&P 500 CME NET LONG POSITION BY 9,213 CONTRACTS TO 144,877 IN WEEK TO AUG 25