USDollar Set to Break Out Higher DXY
Updated
The US Dollar Index has been stuck in a rut. Since mid-May it has moved mainly sideways. Bouncing back and forth in consolidation, like it is bouncing off of the walls of a jail cell. The top of the consolidation is at the November high, a spot it just can’t seem to get over.
But the chart below suggests there may be a jailbreak soon. There are several thing to watch. First that consolidation has been tightening. Each low has been a little bit higher than the last one. This is a sign of buyers overwhelming sellers. It also creates an ascending triangle. A break to the upside carries a target to 102.
Momentum has held bullish, but reset off of the extreme levels of May. The RSI held at the mid line on the pullback and is now curling up. The MACD has also reset lower, nearly to zero, but remains positive. Finally the Bollinger Bands were pushed open Friday as the price drove up to resistance.
But the chart below suggests there may be a jailbreak soon. There are several thing to watch. First that consolidation has been tightening. Each low has been a little bit higher than the last one. This is a sign of buyers overwhelming sellers. It also creates an ascending triangle. A break to the upside carries a target to 102.
Momentum has held bullish, but reset off of the extreme levels of May. The RSI held at the mid line on the pullback and is now curling up. The MACD has also reset lower, nearly to zero, but remains positive. Finally the Bollinger Bands were pushed open Friday as the price drove up to resistance.
Trade active
102 Target Next The SPX500 is very likely to trade above its January top of 2878.50 during the next few weeks. By the end of the year the 3100 level is likely to be reached
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