Yes, exactly, that is 'THE' Question! I guess it's important to emphasize (again) that COT Extremes could be present in a market and grow for many many weeks and months before there is any reaction in prices. I think it's important to stay calm and be patient until the signals become more clear. The USD is our monetary system's base currency - at least for now it still is - so with uncertainties all over the world and with a more hawkish tone from the FED we should not be surprised to see the strength of the Dollar. The fact that with these elevated bullish COT extreme levels the Dollar is still rising to me supports the view that the dollar has more to go. We shall see... All the best to you!
Thanks Thomas, great review as always!
Thank you for the analysis 🙏
My pleasure!
If DXY bullish situation, why EUR is bullish also? Situation with EUR is similar to NZD (bearish).
Yes, exactly, that is 'THE' Question! I guess it's important to emphasize (again) that COT Extremes could be present in a market and grow for many many weeks and months before there is any reaction in prices. I think it's important to stay calm and be patient until the signals become more clear. The USD is our monetary system's base currency - at least for now it still is - so with uncertainties all over the world and with a more hawkish tone from the FED we should not be surprised to see the strength of the Dollar. The fact that with these elevated bullish COT extreme levels the Dollar is still rising to me supports the view that the dollar has more to go. We shall see... All the best to you!