US Dollar breaks trend line dating back a yearI am looking at US Dollar today. It has broken a major trend line going back a year or more. In April of 2018, it broke a major trend line and started a strong push-up. WIll that happen this time? Well, first let's start with a 3 monthly Linear Regression tool. I use 3 months for a trend. Pearson's R value is 0.6955 closer to .50 than it is to .9. This is important because it is telling me that price is separating further than the mean and that could be a sign of a slowdown in direction. Next, Money Flow Index has clearly shown a push to the upside from the 89s which is where we bounced in April 2018. This confirms the Pearson's R-value and the overall slow down. And lastly, Volatility. the Normalized ATR is showing increasing volatility in a trending upward slope. How do I know that the US Dollar will start its push up? I don't but I will be looking for increased volatility and VOLUME. Volume will be key the rest of this week and next.
