The US Greenback Soars! USDX’s Greatest Weekly Rally Since 2022…

What is occurring, in actuality is, that as a result of completely different (emotional = technical) causes, the sentiment will get so unhealthy that individuals will begin to really feel that the outlook for the USD Index is bearish (not likely primarily based on outlook, however by wanting again and extrapolating the newest value transfer), after which they use no matter they’ll to justify this outlook.

And since there are many theories to select from, they take a number of, they usually declare that the USD Index is going to decline due to these causes, whereas in actuality (which is occurring on the unconscious stage), they’re anticipating the USD Index to maneuver decrease simply because it’s been shifting decrease prior to now.

This seems to have been the case lately.

And you understand what occurs when the sentiment for a given market is extraordinarily unhealthy? It bottoms, and it bottoms exactly as a result of the sentiment is extraordinarily unhealthy. Everybody, who was on the sidelines isn’t just out of the lengthy positions, however perhaps even briefly positions. Conversely, when everybody and their brother suppose given market can solely transfer up due to some new paradigm (inventory market and AI shares, anybody? Crypto, perhaps?), the highest is fashioned. Okay, generally it takes longer for the highest to kind, just like the one in bitcoin – it took years.

Earlier than presenting you with the USD Index charts, let me state the (hopefully) apparent:

A decline just isn’t bearish.