USD’s Dead-Cat Bounce Is Over

It never fails.

Any time the USD begins to rally, even a little bit, the deflationists come out in full force proclaiming that it’s the start of a major bull market that will blow up the financial system.

USD’s Latest Bounce

Having staged one of the worst annual returns in years in 2017 (down over 14%), the USD was BEYOND oversold. Throw in the fact that traders were RECORD short USD and record long the euro and the stage was set for a dollar bounce.

Weekly USD

Hard Resistance

That bounce is now OVER. The USD has slammed into major resistance. And anyone who thinks that the US currency is going to explode higher when the ECB is about to ends its QE program needs their head examined.

Instead, the next move will be the $USD breaking down to the mid-80s.

USD’s Next Move

And this move is going to send risk assets, especially inflation/reflation trades THROUGH THE ROOF.

This is the “White Swan” I’ve been forecasting since end of March 2018. It will mark THE blow-off top for the markets. Yes, I mean THE top will be in for years to come.

We all know what comes next.

Best Regards,

Graham Summers.

Chief Market Strategist

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