Dollar Reversing?

It appears a reversal in the dollar may be underway. Stocks are beginning a downtrend after a strong rally, the S&P formed a swing high and closed below the 10 DMA today, and currencies like the euro and Aussie dollar fell today. The dollar has been hitting extreme oversold levels for a few days now, it is just a matter of time. 

We got about as close as we could in the Aussie dollar to our price target at 0.783 overnight as price traded up to .78175 at about 3:35 AM ET before dropping sharply until 6:50 AM in the morning. If the dollar is reversing it is doubtful that price will make it to our original target. We suggested our brokerage clients exit today near .774, to lock in as much profit as possible. 

If we are in fact having a reversal in the dollar, it will provide many opportunities as the stock market and many of these commodities cool off briefly from this strong rally seen in some markets. Overall commodities are in a bull market, so the trend will continue up, but in the meantime this dollar rally should provide opportunities to cash in on a few shorts and buy in to other commodities at a lower price before the bull market continues. Depending on price action in the dollar we should have many opportunities in the next few weeks.