Jacob Bourne and Robert Fullem at Bloomberg
JAN 26, 2018
There are scary charts, and then there are scary charts. Imagine what the beginning of a technical freefall would look like. Got it? Does it look a whole lot like this?
After the Bloomberg Dollar Spot Index closed Tuesday right on the 50 percent retracement line, Wednesday’s selloff saw it break right through. Given the sharp rally in 2014, there’s not a lot of support levels until it reverses. There will likely be a pause near 1100, but there isn’t much major long-term support until the 1056 level, around 5 percent lower.
The USD has been well and truly routed to start the year. If you bought gold, silver, or (insert literally any other major worldwide currency here) instead of US dollars, congratulations: