• When profitable long traders, that have taken a previously successful Long on the US Dollar, are so profitable, following a major rally, what do they generally do?
  • Many professionals at this situation need to mitigate their risk. One way of doing that is by lowering the size of their positions. That means taking partial or full profits, and perhaps entering again later
  • These pros do not go out of their Long because they think, fundamentally, the US Dollar is weak, but because they must reduce their position's risk, at least partially
  • Algos are watching certain lines that others may be watching, and may be looking to sell, believing it is time others would sell
  • The question is, also, if the lines are right and if the sell orders are strong enough, close to there, in addition to other factors
  • In summary, do not be very surprised if the Dollar cools down soon, even temporarily, as the below shows
  • This is not a trade idea, that is up to you. It is something to keep in mind for the US Dollar and Dollar index
DXY Dollar Index Weekly Chart may find sellers soon
DXY Dollar Index may find partial profit takers soon

Trade the US Dollar at your own risk.