Short Term Risks For The US Dollar

My view:

Investors and speculators everywhere have piled into the US dollar with gusto over the past two months.

As a result, the dollar has moved up in a parabolic fashion against most other currencies.

The ECB meeting on Thursday October 2nd will give us better insight into their bond buying plans.

If we see a smaller than anticipated package we can expect the dollar to pull back in shock.

Another risk to the dollar is a delay in the implementation of this European version of QE.

At this point, the dollar looks quite overbought with divergence on the RSI indicator.  A pullback could be enough to trigger a bounce in gold and crude oil.

We shall find out tomorrow.