The U.S. Dollar just had its sixth-best quarterly return of the past 34 years! (See post)
And that strong Dollar rally has taken it up to monthly falling channel resistance (lower right chart) with 89% of investors bullish at this time.
Before the 90-day rally, less than 25% of investors were bullish.
Not So Much The Yen Or Euro
While the US$ has rallied, other currencies (Euro, Yen, Australian Dollar) have declined by large percentages. As you can see, few investors are bullish the Yen or the Euro as each is at key technical levels.
Could we be near a price point/sentiment set up where the Currencies could change directions?
When it comes to portfolio construction, being on the right side of the FX force is important. So keep a close eye on these currencies as they tend to influence many assets.