Behold rare USD strength

It is the 4th notable time that the DXY hits a monthly Overbought RSI reading.

Monthly Overbought readings in the U.S. Dollar Index (DXY) portends a peak or at least some stifling and sideways travel for the U.S. 10 year bond yield.

Even through the rate hike mania of the early 1980’s, if you queued off the DXY peaks, the abatement in the 10 year bond yield held true.

Tip: RSI Overbought readings can stay Overbought for much longer than many expect.

August 29, 2022

by Rob Zdravevski

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