USD Just Reversed A 5 Year Trend

USD has just reversed a 5 year trend. USD will be bullish for the coming many months. As US economic recovery gets going and FED is forced to raise the interest rates, investors will find USD more attractive as compared to other currencies and smart money will start flowing into USD dominated assets making USD more bullish.

“A lot of investors have forgotten that in a bull market, you tend to see your economy strengthen, the dollar strengthen and equities go with it,” said Craig Johnson, senior technical analyst at Piper Jaffray. “We have just reversed a five-year downtrend. I don’t think that’s insignificant by any means.”

Driving the dollar strength is an influx of capital from Europe, where economic conditions are more uncertain, said Johnson. “It’s going to continue to go higher,” he said. “This trend reversal in the dollar is only going to continue to get stronger.”