Of late the markets choppy action has been somewhat boring, kind of like a rocking chair…its keeps you busy, yet you get nowhere! Is the boring action about to end?
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The Dollar ran into a brick wall of resistance at (1) 6 weeks ago. Now the Dollar is making a second attempt to get above resistance and its 38% resistance level at zone (2).
So far a breakout HAS NOT taken place and RESISTANCE IS BACK AT HAND… yet if the Dollar can muster up enough strength to close a couple of percent above the 79 level, the lack of trend of late will come to an end!
Portfolio construction/positions will be extremely important should the Dollar breakout and will be key to the Shanghai and Commodities (see post here)