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Currencies – one small sign that the US$ has rallied enough for now

The US $ has been strong throughout 2018 and particularly so during February. This rally was largely unexpected and it has just produced the first sign that it may be overdone. The signal is not in a US$ pair but in the Canadian$ against the Yen:

Cabn$ -$ & yen can$ ext

This is probably not enough to warn of an imminent reversal of the $'s rally, or even a pause but it does serve to remind us that even the strongest trends don't live forever.  It is worth buying some Canadian $ against the Yen hereabouts - in line with the signal - but we would wait a bit before jumping out of US$ long positions.

All signals courtesy of software supplied by our friends at Parallax Financial Research www.pfr.com