Here's the U.S. Dollar's Next Move

Last month, I told you the U.S. dollar was going to break down.

 

You see, parabolic moves – a move that is nearly straight up in an asset – always end at some point.

 

The dollar did pull back shortly after my essay. But it wasn't the dramatic decline that typically follows a parabolic move. It was mild and shallow.

 

Since then, the U.S. Dollar Index has rebounded and rallied to an even higher level. And traders are betting on the rally continuing.

 

But in the short term, I'm not so sure...

 

Take a look at this daily chart of the U.S. Dollar Index...

 

 

Note the Moving Average Convergence Divergence (MACD) momentum indicator at the bottom of the chart. The MACD is a measure of overbought and oversold conditions. And today, the MACD is overbought – which warns of an impending decline in the market.(more)

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