The firm says that the US dollar is now at its most oversold level in 40 years
Adding that they have closed their short position in the dollar index, while also closing out long positions in the euro and Australian dollar against the greenback.
There is little argument that the dollar has been on the receiving end of a brutal beating over the past few weeks and the chart is also telling of that:
That said, the greenback appears to be finding some support from the September 2018 low in the Bloomberg dollar index chart so that is something to take note of for now.
However, if that level starts to give way, there is little in the way - from a technical perspective - stopping the dollar from a more serious beating down the road.
On equities, Morgan Stanley says that its market timing indicator is now giving the "sell" signal and that implies that upside is capped in the near-term.
