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The lower left inset chart was put together this weekend for Premium Members. Traders have created a rather large “fish mouth spread pattern” again at (3). The same fish mouth spread took place in 2009 and 2011, resulting in large U.S. Dollar rallies.
Currently another large spread is taking place amongst traders, while the U.S. Dollar is near rising support and only 32% of investors are bullish the Dollar.
In the past this fish mouth spread was spot on in suggesting a Dollar rally was close at hand and the rally put pressure on risk assets.
Will the results be any different this time?