It’s Time to Take Profits on the U.S. Dollar

The dollar rally is just about over. [Jeff Clark's Market Minute]( It’s Time to Take Profits on the U.S. Dollar By Jeff Clark, editor, Market Minute The dollar rally is just about over. The U.S. dollar has gained 4% over the past four weeks. That may not seem like a big deal for stock traders who are used to seeing large, chaotic moves in their portfolios. But, for a currency, a 4% rally in one month is insane. And, if you bought the buck [last month]( when we pointed out the potentially bullish setup, then it’s time to book the profit. Recommended Link [Millions of Investors WON’T Make This Move]( [image]( Right now, you now have the chance to earn a series of payouts from the success of 10,000+ companies. But millions of people WON’T take advantage. Don’t be one of them. [Click here to find out how to kickstart your new income stream today.]( -- The Dollar Has Reached Our Upside Target Here’s the updated chart… [chart] [(Click here to expand image)]( When we looked at this chart one month ago, we noted the dollar was trading near its lowest level of the year. But, there was positive divergence on all of the momentum indicators at the bottom of the chart. And, we suggested that a strong rally could boost the buck all the way back up to the 104 level. That’s where we are today. Now though, the dollar is overbought. It’s trading well above all of its various moving average lines. And, those moving averages are extended far away from each other. So, there’s not a lot of fuel left to power the dollar much higher from here in the short term. Free Trading Resources Have you checked out Jeff's free trading resources on his website? It contains a selection of special reports, training videos, and a full trading glossary to help kickstart your trading career – at zero cost to you. Just [click here]( to check it out. Another Overbought Indicator Traders should also note that the Relative Strength Index (RSI) is above 70. That’s another indication of an overbought condition. It’s rare for the RSI for the dollar to reach such an extreme level. The last time it happened, back in mid-April, the dollar peaked and then trended lower for the next two months. Of course, that doesn’t guarantee the buck is going to sell off immediately from here. But, it does suggest that there’s probably not a lot of upside left in this current rally. So, rather than risk giving back some of the gains achieved over the past month, traders who bought the buck on our suggestion last month should take their gains off the table today. Best regards and good trading, [Signature] Jeff Clark Editor, Market Minute [Jeff Clark's Market Minute]( Jeff Clark Trader 55 NE 5th Avenue, Delray Beach, FL 33483 [www.jeffclarktrader.com]( To ensure our emails continue reaching your inbox, please [add our email address]( to your address book. This editorial email containing advertisements was sent to {EMAIL} because you subscribed to this service. To stop receiving these emails, click [here](. Jeff Clark Trader welcomes your feedback and questions. But please note: The law prohibits us from giving personalized advice. To contact Customer Service, call toll free Domestic/International: 1-800-752-0820, Mon–Fri, 9am–7pm ET, or email us [here](mailto:contactus@jeffclarktrader.com). © 2024 Omnia Research, LLC. All rights reserved. Any reproduction, copying, or redistribution of our content, in whole or in part, is prohibited without written permission from Omnia Research, LLC. [Privacy Policy]( | [Terms of Use](