Yes we’ve broken through a major trendline on the Dollar but I don’t see much upside past $77.50 on this trade. That would be the area where I would be taking profits if I was fortunate to buy the lows and see how it reacts at that key area. If it can consolidate there and move higher this trade could have some legs, but right now the odds are against that with what I’m seeing in the charts.
It’s looking more and more like the recent weakness is a continuation move that will take the markets lower and it’s up to the 15th’s lows to hold. If we go below that level with any amount of strength my next target is 11650 on the Dow before any meaningful bounce will materialize. If we go below those lows I’ll likely sell out of my small positions in my etf’s and go back on the short side.
