{"id":18778,"date":"2021-08-05T07:30:28","date_gmt":"2021-08-05T11:30:28","guid":{"rendered":"https:\/\/www.jeffclarktrader.com\/?p=18778"},"modified":"2021-08-05T07:30:28","modified_gmt":"2021-08-05T11:30:28","slug":"the-dollars-next-big-move","status":"publish","type":"post","link":"https:\/\/jeffclarktrader.com\/market-minute\/the-dollars-next-big-move\/","title":{"rendered":"The Dollar\u2019s Next Big Move"},"content":{"rendered":"

It has been a wild summer for the U.S. dollar so far.<\/p>\n

And, it’s about to get even wilder…<\/p>\n

We turned bullish<\/a> on the buck in early June<\/a> – when the dollar was trading near its low for the year, and it seemed like everyone else was bearish<\/a>.<\/p>\n

Then, less than one month later, the dollar was up 3% – an enormous move for a currency. It was trading near its high for 2021.<\/p>\n

And, it seemed like everyone had turned bullish. So, of course, we went the other way…<\/p>\n

In mid-July, I suggested the dollar rally was over<\/a>. And, I compared the buck to a horror-show villain who had just staged its last attack.<\/p>\n

Today, the U.S. Dollar Index (USD) is trading just slightly lower than where it was last month. But, it looks to me like the decline is just getting started.<\/p>\n

Take a look at this updated chart of USD…<\/p>\n

\"Chart\"<\/div>\n

The dollar got hit hard last week.<\/p>\n

But, it found support<\/a> at the late June low and then bounced. The pattern now, though, looks like a “bear flag” – which is a sharp drop followed by a weak bounce. This pattern often results in another sharp drop.<\/p>\n\n\n\n
\n

Free Trading Resources<\/strong><\/p>\n

Have you checked out Jeff’s free trading resources on his website? It contains a selection of special reports, training videos, and a full trading glossary to help kickstart your trading career \u2013 at zero cost to you. Just click here<\/a> to check it out.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

If USD breaks support at the 91.70 level, then the next support line is all the way down around 90.50. That’s about a 2% decline from Tuesday’s closing level – which may not seem like much for a stock these days. But, it’s a wild move for a currency – especially the world’s reserve currency.<\/p>\n

That sort of a decline will wipe out the entire June\/July rally. It’ll put selling pressure on assets that typically trade along with the dollar – like government bonds and real estate stocks.<\/p>\n

And, it will provide a boost to assets that tend to run counter to the dollar – like gold, silver, and other commodities.<\/p>\n

Best regards and good trading,<\/p>\n

\"signature\"<\/p>\n

Jeff Clark<\/p>\n

<\/p>\n

Reader Mailbag<\/h2>\n

Do you agree with Jeff that the dollar is moving to decline even further, or do you think it could still reverse direction?<\/p>\n

Let us know your thoughts – and any questions you have – at feedback@jeffclarktrader.com<\/a>.<\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

It\u2019s just getting started…<\/p>\n","protected":false},"author":49,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"ep_exclude_from_search":false,"service":"","footnotes":""},"categories":[1],"tags":[],"publication":[10],"person":[7],"newsletter-type":[],"ticker":[],"class_list":["post-18778","post","type-post","status-publish","format-standard","hentry","category-market-minute","publication-market-minute","person-jeff-clark"],"acf":[],"_links":{"self":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/18778","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/users\/49"}],"replies":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/comments?post=18778"}],"version-history":[{"count":0,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/18778\/revisions"}],"wp:attachment":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/media?parent=18778"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/categories?post=18778"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/tags?post=18778"},{"taxonomy":"publication","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/publication?post=18778"},{"taxonomy":"person","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/person?post=18778"},{"taxonomy":"newsletter-type","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/newsletter-type?post=18778"},{"taxonomy":"ticker","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/ticker?post=18778"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}