It has been a rather long time since I looked at the US Dollar Index Futures chart. Pulled out the chart and surprise!
Since June 2022, the weekly USD chart had actually completed a Cup & Handle pattern, retested the resistance turned support at 105, and now is on a tear rocketing upwards. Technical indicators although stretched for a bit, appear to have renewed momentum, crossing over and upwards in alignment.
The daily chart shows some level of stalling in late August, and pushed further upwards late last week, closing at a multi-year high.
In an inflationary environment, with the Fed bent on continuing to raise rates and accepting painful costs, the USD is likely to rise further. Cup & Handle pattern projections put it above 120. This has many many implications, both as the USD rises, and when the USD is categorically above 110, 115 and 120. This USD move will be the backdrop of many new trends over the next couple of months to years, giving traders and investors many opportunities if handled correctly. Watch for them!
Since June 2022, the weekly USD chart had actually completed a Cup & Handle pattern, retested the resistance turned support at 105, and now is on a tear rocketing upwards. Technical indicators although stretched for a bit, appear to have renewed momentum, crossing over and upwards in alignment.
The daily chart shows some level of stalling in late August, and pushed further upwards late last week, closing at a multi-year high.
In an inflationary environment, with the Fed bent on continuing to raise rates and accepting painful costs, the USD is likely to rise further. Cup & Handle pattern projections put it above 120. This has many many implications, both as the USD rises, and when the USD is categorically above 110, 115 and 120. This USD move will be the backdrop of many new trends over the next couple of months to years, giving traders and investors many opportunities if handled correctly. Watch for them!
