Just noticed this breakout this evening on a longer term US dollar chart that I've watched for quite some time.
If this is a true breakout of this long term triangle as I suspect, we will likely see a rally further in the dollar, then a pullback to backtest the descending trendline, and then a big move higher.
Or
This could be a fakeout pop of the trendline and the dollar meanders back inside the pattern and stocks continue to grind higher.
If the breakout is true, expect equities to pull back and gold miners to gradually move higher.
The move measures to at least 88 on the US dollar index, consequently a substantial move lower in stocks could occur this summer if stocks behave as they often due, being negatively correlated to the dollar.
If this is a true breakout of this long term triangle as I suspect, we will likely see a rally further in the dollar, then a pullback to backtest the descending trendline, and then a big move higher.
Or
This could be a fakeout pop of the trendline and the dollar meanders back inside the pattern and stocks continue to grind higher.
If the breakout is true, expect equities to pull back and gold miners to gradually move higher.
The move measures to at least 88 on the US dollar index, consequently a substantial move lower in stocks could occur this summer if stocks behave as they often due, being negatively correlated to the dollar.
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