The “Power of the Pattern” suggested yesterday that the Dollar was facing stiff resistance (see post here) which increased the odds the risk trade was back at hand. This resistance increased the odds that international stocks and commodities should do well. Below is an update to yesterdays chart, as the Dollar is breaking short-term support.
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This short-term breakdown of support suggests that relative outperformance should take place in the international stock and commodity areas. On a side note, a breakdown in the Dollar is usually good news for U.S. stocks too.
