There are many structural reasons that support a dollar bullish trend in the coming years but like anything else timing is the key.
Currently the outstanding US Dollar short positions are enormously and usually when everyone is on the same side of the boat the market goes in the opposite direction. But this current bearish trend will not reverse just because there will be a mythical big buy position that will reverse the trend.
A bearish trend will reverse when all the sellers who wanted to sell are in the market and there is no one left to sell. The same is the case with a bullish trend which will not reverse because some huge sell will come in the market but because there are no more buyers to lift the market.
So in our case it will not be a bullish dollar trend because some positive reasons. It will be the outstanding US Dollar short positions which are going to create the bullish trend least expected. It will be the biggest squeeze of our lifetime and when this short position will feel the pain of market going against them they will fuel the market new trend as they will be forced to buy back their shorts, which in turns will add more power to the new bullish trend.
The his
Read article
Translate to English Show original