Today's action in the US Dollar was very interesting. It appears to have made a short term double bottom and a trend break is not far away. Bearish sentiment has reached an extreme with the market trading off of rumors and articles. Yet the USD Index is nowhere near its all time lows and has been selling off in a very gradual, nearly sideways pattern.
Today the Dollar was up strongly and the equities markets and crude oil also showed strength. One day does not make a trend, but from a contrarian perspective the one outlook that would encompass this configuration--growth--is almost as dismissed as the dollar itself.
This chart is worth mulling over:
My contrarian radar has been on alert for a few months now. Abortive attempts to get long the dollar have been made. But the time may soon come for the rare Dollar Bull.
If there is a rally in the USD, then what of gold and commodities?