The greenback seems to be in the process of forming a floor pattern despite ongoing negative narrative by the financial MSM. Although I happen to have a dog in this fight my general perspective remains to be one of skeptical optimism as the Fed continues to exert massive headwind against a stronger Dollar.
That’s a pretty clean looking double bottom on the DXY and although that doesn’t mean a medium term floor is chiseled in stone the odds for at least a quick bounce have increased markedly. However it’s also a bit of a double edged sword in that a breach of 95.5 would most likely lead us straight into the basement of Hades.
My exploratory DXY campaign is starting to look like it may just survive the week. As it barely scraped the 1R mark I am permitted to advance my trail to break/even. If you are a sub and have followed me into the abyss on that one I suggest you do the same.
As it’s Monday we’ll look at our weekly stats starting with the Sharpe Ratio for week #33. The good news is that things are looking up a bit and will be improving over the course of the next two weeks.
However once we pop open the hood and look at bit deeper things get a wee bit more complicated:
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