The Dollar Breakdown Has Legs

Nearly two months ago, the U.S. Dollar was starting to break down after a powerful rally. At the time, I wrote that if the dollar's current pattern continued to unfold, the buck was destined to suffer further losses. I proceeded to make my case as to which stocks stood to gain the most from a falling dollar.

Fast forward to today, and the dollar breakdown is in full swing. Looking at the daily chart of the U.S. Dollar Index ($DXY), a series of lower highs (LH) and lower lows (LL) is evident. The dollar has fallen beneath its 50-day (blue) and its 200-day (red) moving averages. Those averages appear to be ready to cross, which would create a bearish momentum indicator (shaded yellow). At this point, traders should sell into dollar strength....300 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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