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Dollar is the indisputable king

EURUSD News by Simon Kazinsky on 06:44 May 29, 2018 EST

The dollar has started another leg up and is strong against absolutely everything.

Retail traders are shorting the buck aggressively, particularly by increasing long positions in European currencies. The chart above shows that for the past month these trades are also losing hand over feast.

Both technical charting and retail positioning suggest the bull trend for the dollar has only started. Momentum can increase if US equities start falling. In this context, the japanese yen has been gaining for the past week while gold is also holding relatively and this may be signalling a flight to the traditional safe havens.

Fighting strong trends and picking tops/bottoms is almost always a strategy that ends up badly. I remain bullish on the dollar.