Distribution Logic And The USD Dollar

The USD dollar is very important, we now have a problem, the selloff in the $USD is weakness. Be worried.

We can see the buying climax (BC) , followed by a automatic reaction (AR), a test (T) and we also have a up thrust after distribution (UTAD) and the sell off to support, a clear Sign of Weakness (SOW). The concern is the $USD has fallen from a break out of resistance to previous support, $USD is very oversold, and you can expect a bounce, and the bounce will have all traders considering loading up large shorts (expect a last point of supply LPS). This is a classic Wyckoff distribution pattern. Of course traditional charts readers may call this a 'head and shoulders' once the LPS has formed. Keep watching!

Of course those outside the USA holding US paper assets won't be pleased, and like before, a falling $USD creates portfolio adjustments, buying non USA stocks and bonds, etc. Also you can expect support for real assets (oil, metals, art).

Click for popup. Clear your browser cache if image is not showing.




How did you like this article? Let us know so we can better customize your reading experience. Users' ratings are only visible to themselves.


Leave a comment to automatically be entered into our contest to win a free Echo Show.