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).
 

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