A Rising Dollar Amidst a Currency War?
Wall Street has been pointing out how a falling Dollar is good for stocks ... especially for international companies. What happens if the Dollar rises now?
Our Advanced subscribes have been aware that the Dollar has been in a very large triangular pattern. Base on the pattern, we established a downside target between 76 to 77 last July. Our actual downside support was at 76.20. Last Friday (October 15th.), the Dollar fell to 76.15 on an intra-day basis. Therefore, the bottom support has now been reached.
So, what now?
The next real question is about whether or not we hold the 76-77 support with a currency war going on.
Right now, I think the answer is leaning toward yes for holding the support, and an abatement on the intensity of the currency fight that has been going on. We may need another week to see if this is correct, but in the meantime, the Dollar should start showing some basing attempts if it is going to hold 76-77 as a support.
Yesterday, our Accelerator moved higher and it crossed above both red and blue trend lines ... so, that should mean the Dollar moves higher today as it tries to build a base for challenging its upcoming June/October resistance line.