# It is Time to Focus on the US Dollar's Action

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Last modified: 2021-05-19

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By Paul Ebeling · 2021-05-19
Tags: Forex, investors, Buck, inflation, dollar, Paul Ebeling, .DXY, USD, AUD, GBP, JPY, CAD, DSI
Signed: no (published before platform launch).
Nothing in this article is investment advice.

#dollar #Buck #investors #DSI #DXY #inflation

$USD

*"The Buck is testing Key support for the 2nd time in a week and the 5th time this year..." -- *Paul Ebeling

The Buck has pulled back on minimal selling and there was little buying.

Everyone is focused on the Inflation trade now. Just look at* Barron's*, who is not  known for being ahead of the curve, and check out what their cover story was this past weekend: It was all about the "I" Word!

The Big Q: Who does not see the Inflation?

About the USD: no one is discussing its huge decline since early April. And now it finds itself testing support for the 2nd time in a wk and the 5th time this yr.

The Daily Sentiment Index (DSI) for the Dollar Index (.DXY) is currently 18. We know if the DXY breaks that support around 90, it will draw attention. Maybe even *hysteria* accompanied by a DSI reading that comes close, or dips into single digits.

As a reminder, single-digit readings in the DSI are extreme. 

Thus, if the Buck breaks the Key support zone on the Dollar Index people will see it, comment on it, get upset over it, then we will watch the hard commodities soar.

Have a healthy day, Keep the Faith!

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