Well, the US Dollar ($USD) has certainly created some broad moves in the markets throughout last year with a massive thrust out of a trading range mid 2014. We can see it was almost exactly one year ago that the dollar started from its July low. This week shows another potential turning point for the $USD. Yesterday's trading saw the dollar give a hard bounce off neck line support. When we have a clear neck line and a typical head/ shoulders setup, it is important for us to see if the trading range stays in play or if the ticker symbol breaks down through support.
Well, this couldn't be much clearer. Since the $USD guillotined most of the commodities last year, this will be an important test to see if the commodities can rally and the $USD loses support at the neck line. With Options Expiration today as well as quarterly options expiration, this is a meaningful place to expect a turning point. You can also use the UUP tracking ETF to watch intraday. Happy Fathers Day to everyone.
Greg Schnell, CMT