Dollar Reached Target. Now What?

As I had mentioned in the last post I made over the weekend, the dollar made its drop to the 92 level and now appears to be making a reversal candle.

If this reversal candle holds true, I think we will have a pretty decent rally which will last well into June.  This will put a lot of pressure on commodities into that same time period which just happens to coincide with the weather market.  This  will probably push grain prices to levels which will give us our next major pricing opportunity. 

Now what if it turns out that this is not the bottom in the dollar?  I see no support below 92 until the dollar reaches a longer term support area in the 88 price area which reaches back to 2009.  This could mean more pain for a few days if you are having margin calls to meet.  If you have sat on your hands and not priced any grain, then you would receive a gift from the market gods.

Either from 92 or from 88, the rally which will follow this dollar low will come fast and furious.  It will apply a lot of pressure on the grains.  Of course, the news will be focusing on a how well the planting has progressed, or some unknown problem which has developed in South America, but have no doubt..... just as the dollar collapse has driven soybean prices to unforeseen highs and kept corn prices propped up, the rally in the dollar will be the driver of the grain market as prices fall.