Careful observers of the forex market will remember that over the past few years, whenever the U.S. dollar would fall to a significant low against the euro and other competitor currencies, the chorus of dollar doomsayers would get louder.
And then, as if by magic, the dollar would rebound, to the surprise of the skeptics.
Except, there is nothing magical about it. When market sentiment reaches an extreme, bullish or bearish, eventually it leaves prices no other option but to reverse. Contrarian investors, like Elliott Wave International's subscribers, know this well.
Remember when it happened last time? Late October-early November 2010. Today, it's again a relevant topic because the EURUSD, the euro-dollar exchange rate and the most actively traded forex pair, has just rallied above $1.41.
This video by Jim Martens, EWI's Senior Currency Strategist and editor of our intensive Currency Specialty Service, captures the negative dollar spirit of last fall. Watch it now, free, and see if you find any parallels to what we're seeing today:
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