A bit more context…
The price action today I think is a bit indicative that Dollar bulls are reaching their limit.
Let me show you something:
This is from BofA and it highlights that USD longs right now are the most “crowded” trade right now.
What does that mean?
Means that too many are bullish on the Dollar, and too many are long on the Dollar.
Leaving small room for further gains unless there’s a new fresh catalyst to shift the fundamental context further in favor of USD bulls.
The price action today across Dollar pairs I think is indicative of the fact that the USD long side is too crowded.
Which means it’s worth being careful with either EURUSD shorts or any other Dollar long right now as they could be near a short term turn.
Just a thought for now, but a bit of context into one of the reasons why the EURUSD shorts were squared in profit earlier today.
Will share when there is something actionable to take.