“Resistance Test” for the Dollar? Does that sound odd to you? Well it is true that a key test is at hand for the Dollar in the chart below.
CLICK ON CHART TO ENLARGE
Resistance is resistance until broken! Dollar is facing a key level at line (3) in the chart above. Commodities were fairly soft last week and many want to point a finger at the Dollar. If you are long commodities (metals, grains or softs) a upside break of line (3) in the Dollar, should be the key indicator to lighten up on those positions.
Inverse commodity ETF’s should do VERY WELL, should the Dollar break above line (3), since so few of investors are bullish the Dollar and the next key resistance level is several percent above current levels.
KY…would agree on the UUP resistance. Dollar index is more important to me than UUP, which is just an ETF, yet agree on the number! I did the Euro last week, reflecting it had broken below a key rising wedge.
Sure wish we could be short PCK! Is Calfornia falling into the ocean, when it comes to the price of the muni bonds??? OUCH !
I’ve pegged:
UUP resistance at 22.70.
FXE support at 136.80.
Are these correct? Has Euro support already broken?