The Dollar Test

Last month technical analyst Chris Kimble gave us an interesting look at the Dollar in a rising channel. Today he gives us an update.

Chris comments: Just a short of a month ago, I suggested that the Dollar could "cool off" from its steep rise, on account of the strong overhead resistance.

In the past month, the Dollar has declined almost 4% and the oversold Euro has rallied.

Now the Dollar finds itself on a support line that dates back to December of 2009. This support line is the first big "test of strength" for the Dollar in the past 90 days.

As usual, the impact of what the Dollar does here, will have a sizeable ripple effect on many asset classes.