Smooth Sailing No More

A weakening U.S. Dollar throughout the late winter months seems to have enabled a good deal of risk appetite in both equities and commodities, not to mention the Euro and Swiss Franc. 

However, the greenback is staging at least some type of relief rally this week. And while equities have yet to flinch, precious metals and their miners are using the Dollar strength to correct some overbought conditions in the way of a price pullback. We are stalking the GDX and GDXJ components into these pullbacks for fresh long entries provided that buyers step in to defend them in the coming days. 

Beyond that, the Euro also seems to be smooth sailing no more. 

On the weekly Euro/Dollar cross, below, note how the cross has essentially been rangebound for nearly fifteen months now. With an oversold Dollar bouncing, my bet is that the Euro pulls in a bit further off well-defined resistance.