Nicole Elliott, technical analyst from Mizuho whose opinion I respect, was just on CNBC Europe calling for the dollar index to hit 66 within the next nine months. Yikes.
She was correct in terms of magnitude about the yield of the ten year US treasury, but I do not recall if her timing was correct or not.
I drew in the thick pick-ish line on the chart, which is similar to what she put up during the interview.
I've been a dollar bear for a long time but this call exceeds my bearishness and if correct would cause a lot of dislocations.
That the chart looks horrible and that the Fed is going to embark on some sort of rate cutting cycle clears a path for more weakness, even if 66 ends up being too far.
It makes sense to give a little thought to what you would do if her scenario plays out.