The ‘Dutch Trump’ populist lost his bid to become Prime Minister last week.
This may have elicited strength in the euro and selling in the dolloar.
A daily dollar shows it broke its 50 day line with authority triggering my Expansion pivot sell signal in the process.
In so doing the dollar also triggered a Rule of 4 Sell in snapping a rising 3 point trendline.
The setback in the dollar came despite the Fed’s interest rate hike even as the Fed signaled this was the beginning of a campaign of consistent raise in rates.
The break in the dollar backstopped a surge in the precious metals miners on Wednesday.
GDXJ ripped 34 to 38 and now shows a 50% retrace toward initial support.
Well-defined support comes in between 35 and 36 where another higher low on the hourlies may be installed on another big backtest… a fractal of the Big Backtest that played out on the dailies last December.
Unless the dollar can recapture its 50 day in short order it is vulnerable to a break to 98 and an Eiffel Tower move — a complete retracement of the post election rally.
An extension lower in the dollar should perpetuate a breakout in gold and the miners over the last swing high.