Yesterday I shared that the spread between the Dollar and the Euro had reached a point where reversals often take place…A dollar rally/Euro decline usually takes place when the spread reaches these levels (see post here)
CLICK ON CHART TO ENLARGE
One day a trend does not make, yet the Euro did fall over 1% yesterday (FXE) and the Dollar is working on a bounce as it is attempting to take out short-term resistance. I remain of the belief that should the Dollar rally continue, it should put some downside pressure on some commodities and stocks.
One of the larger impacts in the commodity arena could be the grains/Ag (DBA) area due to this chart (see post here)