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I shared this chart with Premium Members this past Friday, reflecting that the Dollar had broken above its 23% Fib level, after trading within a range for a few months. The Dollar has rallied almost 5% in two weeks, which took it up to falling resistance line (2). This line should present short-term resistance for the Dollar and well could cause stocks to see a short-term rally.
Ideal situation for the Dollar would now be for it to fall back down to the 23% Fib level and test the old resistance as new support at the 76.50 level. Odds favor this will happen, which should see stocks have a counter trend rally. A short-term pull back in the Dollar should be viewed as a positive if you are bullish the Dollar.
