On 1/12 the “Power of the Pattern” was reflecting that a bearish pattern was taking shape in the U.S. Dollar in the chart below.
This pattern suggested ….a two-thirds chance, that the Dollar would get rejected at resistance! (see post here)
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What has taken place in the past 6 weeks? The Dollar has declined and the S&P 500 has been on a non-stop upward rally, reflected in the chart below.
Is the trend about to change?
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The above chart reflects that 6 weeks later, the Dollar is nearing support and the Euro is nearing resistance, while the 500 index has been on an almost vertical path!
It would appear that Currencies can still have an impact on the risk trade!
Is a “Turn Around” in the currency markets going to turn around momentum? Gold & Silver have been strong of late…it is this type of currency situation that can cause Gold to turnaround at its 4-year resistance line! (see post here)
