USDOLLAR Bull Trend Still In Tact
- Repeating theme from December
- The trend is up, until it isn’t
- Potential for 2009 high at 11800
The USDOLLAR index has been relentlessly tracking higher for months, and while the rally looks long in the tooth; the trend is up, until it isn’t. Yesterday, I pointed out a repeating pattern from December, most visible on the 4-hr chart. You can check it out here. Today, the index successfully tested the rising 2.5 month trend-line. As long as this support continues to hold, the likelihood for a breakout in the next few sessions becomes increasingly likely. The 2009 high sits a bit higher at 11800, which makes this a logical target should we break out of the bull flag formation. If a failure takes place, putting USDOLLAR under 11575 and the rising trend-line, then the bias will shift lower.
USDOLLAR Daily: Sep ’14 – Jan ‘15
--- Written by Paul Robinson, DailyFX Research
To contact Paul, you can email him at email@example.com
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.