Dollar Structure Reaches Historic Extremes as Euro Confirms Bullish Signal

The latest Commitments of Traders report has revealed historically stretched positioning in the True US Dollar Index, with large-speculator and commercial positioning reaching all-time extremes.

The Euro also confirmed a bullish extreme, with both large speculators and commercials reaching a 334-report reading - a level not seen for more than six years.

Experts warn that an all-time extreme should never be treated as an automatic reversal signal, but the combination of these two stretched readings is significant.

The COT data shows that the positioning structure behind the move is historically unusual, and further confirmation should come from price behavior and related currency markets.