{"id":23519,"date":"2025-03-19T07:30:00","date_gmt":"2025-03-19T11:30:00","guid":{"rendered":"https:\/\/jeffclarktrader.com\/market-minute\/?p=23519"},"modified":"2025-08-22T07:34:52","modified_gmt":"2025-08-22T11:34:52","slug":"time-to-take-profits-on-the-dollar-short","status":"publish","type":"post","link":"https:\/\/jeffclarktrader.com\/market-minute\/time-to-take-profits-on-the-dollar-short\/","title":{"rendered":"Time to Take Profits on the Dollar Short"},"content":{"rendered":"
\n

Managing Editor\u2019s Note:<\/strong> Before we get to this morning\u2019s edition of Market Minute, w<\/em>e\u2019ve got an exciting announcement\u2026<\/p>\n

Jeff has teamed up with TradeSmith \u2013 the premier provider of fintech software, helping investors thrive in bull and bear markets for 20 years.<\/p>\n

It\u2019s also a financial newsletter behemoth featuring in-depth market analysis from some of the best and brightest names in the industry.<\/p>\n

At the heart of this partnership, both TradeSmith and Jeff are dedicated to helping everyday investors navigate highly volatile periods, like we\u2019re in now, so you can profit on both the ups and downs in markets, while exposing yourself to the least amount of risk.<\/p>\n

To reflect this partnership, Jeff Clark\u2019s Market Minute <\/em>will soon become TradeSmith\u2019s Market Minute. <\/em><\/p>\n

Don\u2019t worry, you\u2019ll still get the same, quick-hit market analysis from Jeff three days a week\u2026 we\u2019ll just be adding other expert analysts into our rotation\u2026 So be on the lookout for that.<\/p>\n

As always, any questions or comments \u2013 good or bad \u2013 let us know at feedback@jeffclarktrader.com<\/a>.<\/p>\n<\/div>\n

Time to Take Profits on the Dollar Short<\/h2>\n

BY JEFF CLARK, EDITOR, MARKET MINUTE <\/em><\/strong><\/p>\n

The dollar decline is just about over.<\/p>\n

The US Dollar Index (USD) peaked at about $110 in mid-January. It\u2019s trading near $103 today. That\u2019s more than a 6% decline in the dollar in just the past two months.<\/p>\n

That probably doesn\u2019t seem like a big deal \u2013 especially for stock traders who are used to seeing large, chaotic moves in their portfolios.<\/p>\n

But, for a currency, a 6% drop in two months is a BIG move.<\/p>\n

And, if you took our advice and shorted the dollar in mid-January<\/a>, then it\u2019s time to take profits on that trade.<\/p>\n

Here\u2019s the updated chart of the US Dollar Index (USD)\u2026<\/p>\n\n\n

\"\"<\/figure>\n\n\n

When we looked at this chart in January, we noted the dollar was trading at its highest level in a year.But, there was negative divergence on all of the momentum indicators at the bottom of the chart.<\/p>\n

This condition is often an early warning of an impending decline. So, we suggested the dollar rally was ending. It was a good time for aggressive traders to short the buck.<\/p>\n

Now, after a 6% decline in two months, it\u2019s time to exit that trade.<\/p>\n

The dollar is oversold. It\u2019s trading far below all of its various moving average lines. And, those moving averages are extended far away from each other.<\/p>\n

There\u2019s not enough fuel left to push the dollar much lower from here.<\/p>\n

Traders should also note that the Relative Strength Index (RSI) is below 30. That\u2019s another indication of an oversold condition. It\u2019s rare for the RSI for the dollar to reach such an extreme level. The last time it happened (in late August 2024) it signaled the dollar was near the end of its decline phase.<\/p>\n

Of course, that doesn\u2019t guarantee the buck is going to rally immediately from here. But, it does suggest there probably isn\u2019t much downside left in this current decline.<\/p>\n

So, rather than risk giving up some of the gains achieved over the past two months, traders who shorted the dollar on our suggestion in January should take their gains off the table today.<\/p>\n

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

\"Signature\"<\/p>\n

Jeff Clark
Editor, Market Minute<\/em><\/p>\n

\n

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

Have you checked out Jeff\u2019s 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<\/div>","protected":false},"excerpt":{"rendered":"

The dollar decline is just about over.<\/p>\n","protected":false},"author":100,"featured_media":0,"comment_status":"closed","ping_status":"0","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-23519","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\/23519","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\/100"}],"replies":[{"embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/comments?post=23519"}],"version-history":[{"count":2,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/23519\/revisions"}],"predecessor-version":[{"id":24965,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/posts\/23519\/revisions\/24965"}],"wp:attachment":[{"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/media?parent=23519"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/categories?post=23519"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/tags?post=23519"},{"taxonomy":"publication","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/publication?post=23519"},{"taxonomy":"person","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/person?post=23519"},{"taxonomy":"newsletter-type","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/newsletter-type?post=23519"},{"taxonomy":"ticker","embeddable":true,"href":"https:\/\/jeffclarktrader.com\/market-minute\/wp-json\/wp\/v2\/ticker?post=23519"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}