Formation of the Descending Triangle and the Dollar Index
The United States Dollar Index experienced some wild swings this week.
As mentioned in our previous post, if price were to push past the 110.885 resistance region, we will likely see the Dollar push towards 111.665 which was what happened last week. Price continued to push on towards the descending trend line but was met with strong selling pressure and reverses back towards the minor support at 110.885 region. Potential long potential can be taken at 109.105 key support region if strong bearish momentum were to continue early next week.
In addition to the reversal of the descending trend line, the Dollar Index has now developed a descending triangle. Any breakout confirmation of the pattern can provide us with the next higher time frame direction of the Dollar Index.
As mentioned in our previous post, if price were to push past the 110.885 resistance region, we will likely see the Dollar push towards 111.665 which was what happened last week. Price continued to push on towards the descending trend line but was met with strong selling pressure and reverses back towards the minor support at 110.885 region. Potential long potential can be taken at 109.105 key support region if strong bearish momentum were to continue early next week.
In addition to the reversal of the descending trend line, the Dollar Index has now developed a descending triangle. Any breakout confirmation of the pattern can provide us with the next higher time frame direction of the Dollar Index.
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