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US Dollar Index Break, Fake, Break, Fake, Repeat

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Chart Prepared by Jamie Saettele, CMT

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-DXY held trendline support at the March low. I was looking for the rebound to fail near 100.72. It did until Friday’s surge, which has almost been completely retraced. Big moves are only allowed to happen with very few on board. That’s the point of these shenanigans; to rid the market of the weak hands so that the market can move freely in its chosen direction. I don’t have a strong opinion on direction right now but it is promising for bears that the latest top is near the median line of the 2016 channel.

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