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A five day rally in the Dollar has taken it from the bottom to the top of this short-term trading range. Right now resistance is at hand, which would favor a relative strength play in the international equities markets.
Game Plan…Am going to be a buyer of EEM right now with a tight 3% stop. Should the Dollar break resistance, I will follow up with a post, most likely selling the EEM position. FYI- should this resistance hold, a Dollar decline usually isn’t bad news for U.S. Equities either.
As I shared above, if the Dollar does succeed in breaking resistance I will follow up with a post as quickly as possible, per not only selling EEM, I will either tighten up stops on the long positions or sell them and take profits.
