Although most currency analysts expect a broad dollar decline during 2021, the short-term outlook for the greenback appears to be leaning to the upside, with recent price action suggesting a support base could be forming.
Further supporting the idea of an oversold U.S. Dollar is government trading data. According to data released on Friday by the Commodity Futures Trading Commission (CFTC) for the week to January 19, the next speculative short position on the dollar grew to its largest in ten years.
This opens the door to a potentially bullish short-covering rally up to the trend line.
Further supporting the idea of an oversold U.S. Dollar is government trading data. According to data released on Friday by the Commodity Futures Trading Commission (CFTC) for the week to January 19, the next speculative short position on the dollar grew to its largest in ten years.
This opens the door to a potentially bullish short-covering rally up to the trend line.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.