The dollar rallied good and hard today. Things looked bad for the buck in the early going, as China started talking about increasing the amount of euros and yen in its foreign reserves (at the expense of the dollar).
But then the dollar’s fortunes reversed – traders switches sides on the view that the dollar had gone too far, too fast – and it surged. Shorts rushed to cover, and the dollar surged even higher.
The 50-day moving average is an obvious target, and there is more overhead resistance above that. The thing is, other dollar rallies have failed very quickly. Will this one be any different? If so, why?
Stay tuned.
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