More importantly, USD is Oversold

Following todays earlier note about the AUD trading in Overbought territory, the “basket” US Dollar Index (DXY) inversely registers a more important Oversold reading.

Why is the DXY news more important?

Prices tend to not stay Oversold for too long, whereas they can remain overbought for that little bit longer.

Alas, the chart below shows the DXY Oversold this week, for only the 7th time in the past 13 years.

All this talk of USD weakness may have reached its nadir ?

And in case you’re wondering, the USD (DXY) Index is a measure of a basket of currencies and their trading relative to the U.S. Dollar. The weighting of the index to each currency is; EUR 57.6%, JPY 13.6%, GBP 11.9%, CAD 9.1%, SEK 4.2% and CHF 3.6%

#dxy #fx #usd #currency #oversold

September 1, 2020

by Rob Zdravevski

rob@karriasset.com.au