The U.S. Dollar has been under tremendous selling pressure so far this year, with the U.S. Dollar index falling from 81 down to the 75 area.
The 75 area served as the low back in 2009 and now this area of support is critical for the dollar to keep from going even lower.
This price level is coming into play right as the Commitment of Traders report for the dollar shows that large speculators are reaching their the most bearish level since late 2007. The current net position for the large speculators shows just over 15,000 contracts sold short.
In 2009 when the dollar hit the 75 level, large speculators were extremely bearish as well. When the dollar started rallying, investors trying to unwind their short positions sent the index up from the 75 level all the way up to the 88.50 level and the rally last for six months.
If you are short the dollar right now, you may want to start unwinding your position. History has a way of repeating itself in situations like this.
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