U.S. Dollar Is Looking Increasingly Bullish

Original Article from Seeking Alpha Dollar Currencies

Trader Mark submits:

The chart for the US dollar is looking better by the day… currently it sits near mid December highs but looks poised to close slightly above – potentially leading to a chance to break north of this "double top" pattern. Four separate closes out of 5 sessions over the 200 day moving average also bodes well.

In the "old days" a strong US dollar was generally good (or at worst, benign) for the US markets, but with almost all recent market strength coming from (a) weak dollar plays or (b) US multinational exporters who service Asia & who rely in part on a weak dollar for increased price competitiveness – it will be compelling to see what a stronger dollar does in the intermediate term if this action continues. Is the US dollar foreshadowing

future weakness for "risk markets" as has been the inverse relationship for much of the past 2 years? Or foreshadowing higher interest rates?

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