The Inflection Point: Why the U.S. Dollar is Ready to Rebound

For most of the past year, anything involving the U.S. dollar has been what traders like to refer to as a "one-way trade." And with good reason: Over the past year, the U.S. currency has traded in only one direction - down. Indeed, during the period in question the dollar is down 8.3% against the British pound, 11.65% against European euro and 14.2% against the Japanese yen. On a year-over-year basis, the biggest gains against the dollar have been notched by the Australian dollar (20%) and the Swiss franc (26.7%). This freefall by the greenback is part of the reason that gold and silver soared to new records and commodity prices have zoomed during the past year (before their decline in the past week). But here's the thing: This nosedive by the dollar is ending - with a U-turn that's going to send the U.S. currency into a zooming climb. Traders refer to this abrupt reversal-of-fortune pattern as an "inflection point." And those traders recognize this about-face in the U.S. dollar for exactly what it is: A windfall profit opportunity for investors who understand just how to play it. To see why the dollar is poised for a rebound, please read on...