I’m not sure why everyone seems to bea dollar bull these days. When you look at the chart below it’s still on life support as it’s just barely made it back to resistance, which is the lower trendline of the massive 3 year symmetrical triangle pattern. In fact, with the RSI below 50 it’s still very much bearish and I would even give it room to run up to the 60 level before falling flat on it’s face.
I would love nothing more for the States to have a strong dollar but it’s virtually impossible with the policy makers in Washington. I wish they’d just get over and devalue the thing in one fail swoop than this systematic bleeding by a thousand cuts.
Timing Update: Nothing new to report as we got the rally I was hoping for and late in the day I added back the shorts I covered yesterday. If this market behavers in proper bear form, today should be all we get to the upside. If we rally tomorrow I’ll begin to doubt this bearish call.
