Seriously long term Overbought extreme in the U.S. Dollar

Adding to last week’s post about the extreme move in the U.S. Dollar’s pendulum…….

…..the chart below reiterates moments when the U.S. Dollar Index (DXY) hits a Monthly RSI Overbought reading along with a 2.5 standard deviations above its rolling monthly mean……

but I have also added a notation to the chart showing the percentage amount that the DXY was/is trading above its 200 MONTH moving average.

The emphasis in this study is that it’s on a Monthly basis, being much longer than my usual ‘weekly’ observations. Day traders need not apply.

September 8, 2022

by Rob Zdravevski

rob@karriasset.com.au