The chart below was posted on 2/3, the patterns were suggesting to “long the dollar and short the Euro“ looking for key reversals in both currencies. (see post here)
CLICK ON CHART TO ENLARGE
Since the above post, the Dollar has moved higher and the Euro is declining, narrowing the spread and both positions are making monies. Below is an update on the Dollar, as it continues to push higher above resistance.
CLICK ON CHART TO ENLARGE
The dollar moving higher more often than not, puts downside pressure on international stocks. Earlier this week I shared that for the first time since the summer of 2008 a “SELL SIGNAL” had taken place, suggesting to score on defense in EEM (see post here) The upside push by the Dollar should create challenges for long BRIC positions and help out those scoring on defense in this area.
FYI-the dollar chart above was created pre-market, around 6 a.m. central time…the day is long from over, in either direction!
