Dollar drops, now where from here?

Some readers have been asking for an update to my recent post about the dollar. The dollar traded sideways a few more days, staying in the zone of consolidation described earlier. Today, as there are a few more hours left of trading, it has already dropped into support mentioned earlier at the 38% fib-fan line.

I've marked a support area in red on the chart below and you can see how it intersects a 38% fib-fan line there as well, near it's current price of  80.060. Should this breakdown a likely support area would be the 50% fib-fan line near 79.000. However, if it does get some support followed by upward momentum, it's possible we could see a rise to 81.500. Further weakness on the dollar could push the commodities like copper (JJC) up even higher.



May you live in interesting times,

Klatuu

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