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This week the USD has made a new high for the cycle and still has some upside DeMark red Sequential Countdowns still in play however the USD and many crosses have green Setup 9's so a bit of consolidation is quite possible.  The GBP did reverse today (on a green Setup 9) with the news that one of the BOE Governors is leaning on a rate hike - that's a big change. It really moved the USD lower intraday too.  Sentiment has become VERY extreme too with the USD at 90% and many crosses at very very low levels.  The risk is that the positioning with the USD and especially the Euro remains at risk for a real messy upside move in the USD and lower in the Euro. For you gold longs, the futures and GLD ETF are nearing downside exhaustion and combined with the low sentiment we might have a long trade ahead.  I'd love to hear some feedback and if you have any questions, please email.  If you know of anyone who would like to get this email, please forward and tell them to sign up at Hedge Fund Telemetry.  

US Dollar Bullish Sentiment is at 90%.  This is very extreme and dangerous for a sharp reversal yet I want to see the upside DeMark Countdown finish.  

Commitment of Traders report shows speculators shows a different picture with bullish positioning just starting to turn bullish.   This could get wild

US Dollar Index made a new cycle high today and has an upside red Countdown on day 7 of 13 and green Setup on day 8/9.  The 9's have been pretty good at short term reversals so I wouldn't be shocked to see a little consolidation before higher.  

Euro Bullish sentiment is at 19% and has slightly made a higher low.  Watching this...

Commitment of Traders report shows speculators did take down a little long exposure and did get a new upside red Countdown 13 on a weekly time frame.  If anything this shows speculators remain set up very bullish.  This is a lot of fuel if the unwind starts in earnest  

EURUSD daily hasn't made a new closing low yet there is a downside red Countdown on day 5 of 13.  Today's action is a decent reversal so keep any eye on the coming days if this low holds.

British Pound bullish sentiment is at 10% and matches the recent low.  

Today's action occurs with the backdrop of increased odds of a rate hike coming out of the BOE meeting.  The green Setup 9 has worked well in the past for reversals of limited periods.  There still is a downside red Sequential Countdown on day 8 of 13 in play.  

Yen bullish sentiment is at 30%

USDJPY daily did get a red 13 so you could see the Yen start to strengthen (go lower on this chart)   

Canadian bullish sentiment is at  11% and made a new low this week of 7%.  This is very oversold

Canadian Dollar could bounce after this Setup 9 and low sentiment.  

Swiss Franc bullish sentiment is at 37%

USDCHF daily still has an upside Countdown on day 12/13 pending.  

Australian Dollar bullish sentiment is at 7% and that's a new multi year low.  

AUDUSD daily did get the downside red 13 Countdown and green Setup 9.  Combined with the ultra low sentiment I would go long AUDUSD.  This also is likely why the Aussie equity market has lifted too.  

New Zealand Dollar bullish sentiment is at 16% and matches the May low

NZDUSD daily tomorrow should have a green Setup 9.  A reversal is likely after

USDNOK daily bounced off the 50 day but has stalled

USDSEK daily still feels like the SEK will continue lower breaking 9.00

USDDKK daily still looks lower for DKK but today's reversal has to be watched

If there are any important crosses you would like me to add or send one off, please let me know

Mexican Peso bullish sentiment is at 23% and is starting to lift

USDMXN daily reversed this week after nearly hitting the wave 3 price objective.  The next step will be wave 4 on this corrective move and they the USDMXN will go higher

USDCNH daily started up a secondary upside Countdown and this could be part of the trade tariff actions.  Recall back in Summer of 2015 China devalued and the world freaked out.  

USDHKD daily nothing to report here

USDSGD daily has a green Setup 9 and reversed.  There is a red Countdown on day 10 of 13 so a little more potential after a little consolidation

USDINR daily is stalling here but has breakout potential.  If a new high in the USDINR does not happen a downside wave 3 price objective is 66.07

USDZAR daily is a bit extended and has reversed off a spike.  There is a Countdown on day 2 of 13 so things could get ugly for Rand

USDRUB daily had a green Setup 9 again and could consolidate again

USDTRY daily has both a pink Combo and red Sequential 13 and day 8/9 on a green Setup.  There should be some relief ahead for the Lira

USDILS daily reversed off of the green Setup 9.  

USDRON daily is on day 8/9 with a green Setup and day 6/13 with a red Countdown.  Feels overextended so a pullback is due

USDCZK daily made a new high and reversed like many today.  

USDHUF daily has a green Setup 9 today

USDPLN daily is on day 8/9 with a green Setup

USDARS daily has a green Setup 9 today which haven't worked well and there remains a red Countdown on day 8 of 13.  A lot of stress in this one

If there are any important crosses you would like me to add or send one off, please let me know

EURJPY daily has made a lot of lower highs and considering against the USD I see potential for the EUR to continue lower and on the YEN potentially higher too this one should work

EURGBP daily both have been tightly correlated... both have been weak.  

EURCHF daily should see the Euro continue lower vs the Swiss Franc.  Swiss Franc bullish sentiment is marginally better than the Euro and that might make a difference

EURCAD daily could be flagging since the CAD has been sooo bad and is deeply oversold with both sentiment and exhaustion signals.  

EURAUD daily same story and could see this reverse

If there are any important crosses you would like me to add or send one off, please let me know

A bounce higher seems likely with GBPJPY

CHFJPY daily should work higher.  This one I like with a couple higher lows and back above the flat 50 day.

AUDJPY daily is on day 8/9 with green Setup so a reversal should happen soon

Gold bullish sentiment is at 10% and remains in extreme bearish zone

Gold Futures daily is on day 9 of 13 with downside red Countdown.  It's getting closer.  

GLD Gold ETF daily is on day 12/13 and could exhaust tomorrow.  I do like to have both the futures and ETF in sync so I might nibble on GLD in the coming days with a small position.  

XBTUSD daily still is stuck at 6700 and off the recent lows.  I have no interest either long or short.  I will say with the recent news of a $30m hack on another crypto currency this didn't get crushed.  Perhaps the sentiment is getting very despondent.  The problem is that there is a TON of overhead supply of people who bought higher and I don't believe people are set up short in order to cause a squeeze.  

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