The USD index (today) has stopped near its 50% retracement of the highs in 2001, to the lows set in 2008, at 95.48 (50% retracement is at 95.85).

The reason why this should be alarming for USD bulls is the “last time” we had a major bounce from 1992 – 2001 the USD index also stopped near the 50% retracement (high was 121.02 and the 50% retracement was at 121.46).

H/T to @keepitrealdude for bringing to my attention.

Blake Morrow

Chief Currency Strategist, Wizetrade

Disclaimer: I am long USD through the AUD, NZD and CAD crosses. Yes, I am nervous.