The US Dollar's Outsized Weakness Has It Testing a 15-Year Trend-line.

Confidence in the dollar...or lack thereof...is reaching critical point.

• This morning’s further (and very large) decline in the US dollar is raising all sorts of questions about “confidence.” We do need to point out that the dollar is becoming quite oversold, so it could be due for a bounce soon. However, the DXY dollar index is close to testing a 15-year trend-line. So if it doesn’t bounce soon, the situation could turn rather dark…even for those who think a lower dollar would be good for the US economy.