Previously, I suggested it time to take profit on short Dollar positions. Since then the decline extended, and has now reached firm support at the 80 level. It would be logical to expect a bounce back from here giving an opportunity for another short. With worldwide unhappiness over the Dollar, US debt levels, foreseabledeficits, and uncertain economy cash players will be sellers on rallies. It may take a while for a rally to materialize but be patient. Watch out for a break below 80 on a closing basis, if this occurs it will be time for a new plan.
Dollar: view from the sidelines
