Patterns suggested on 1/11, that the dollar was up against resistance that could halt its recent rally. (see post here) Since the Dollar hit resistance, it has fallen a good deal in a short period of time. Now the Dollar is LESS THAN 2% away from KEY SUPPORT in the chart below.
CLICK ON CHART TO ENLARGE
Rising support line (3) is within 2% from the Dollars current price. I have been surprised that the risk trade has been rather muted, during the decline of late in the Dollar! What might happen to Commodities, International stocks and U.S. equities should the Dollar rally off of support?
This decline in the dollar down to support, in the past has helped commodities and stocks. I will be surprised if it doesn’t help them again, even though they have been a little weak of late.
