Both short and mid term trend on dollar is now down. Generally, weaker dollar good for stock prices so a weaker dollar could favor further rise on stock prices. Below daily UUP chart, decent chances for a rebound but I doubt it will continue very far.
Same goes for weekly UUP chart, can not argue that the up-trend is very strong.
Remember the daily silver chart I posted a couple of days ago just before a nice up-move? Well, here is where we stand on a weekly chart. Long term resistance a head but usually this formation is a consolidation pattern and further upside should be expected.
So the question is, are smarts betting on further easing from the FED?
Disclosure: I’ve been dollar net long (=euro crisis protection) for some time now but looking, or at least considering, exit very soon.
EDIT: Here is a 5y daily eur/usd chart. Notice the divergence with price, note also that currency trends quite nicely.
