Dollar Set for a Break Higher?

The dollar has traded up and down in a tight range this year. And I see it setting up for a big breakout.

On the fundamental side, the U.S. dollar has two things going for it.

1) U.S. economic growth has been far stronger than in the euro zone or Japan. That puts a tailwind behind the dollar, relative to the euro and the yen.

2) The dollar is still the go-to safe haven currency, causing a bid up in price any time global market fears are stoked.

While the dollar’s strength has been tamed in the short term, an ascending triangle pattern is building. This suggests a strong probability of an upside breakout which, when it happens, will propel the dollar’s strength to levels not seen since early 2010. Take a look…

See larger image

This chart of U.S. dollar futures shows a horizontal resistance level, at 85. The bottom of the ascending triangle pattern is formed by successively higher lows, a sign of increasing enthusiasm and strength on the part of dollar bulls.

These patterns usually end with a breakout of the horizontal line – in this case, a break above 85. The resulting move is usually swift and strong. My analysis shows a breakout above 85 should send dollar futures all the way up to 94, slightly above the last major peak made in early 2010.

While it’s premature to call this an upside breakout, two weeks ago we got another clue that suggests dollar bulls are in control. That was a bullish engulfing candle pattern. I’ve circled it on the chart above.

This weekly pattern shows a change in control… which is now firmly in the hands of dollar bulls. I’ll be watching the 85 level closely. A break above should lead to a big move higher in the dollar.

What Killed the Middle Class?

Today real incomes of the middle class are 5% lower than they were in 1970 and 12.4% lower than in 2000… when they peaked! How could this be?

In our new infographic What Killed the Middle Class?, we take a look at some shocking numbers to show how bad it’s become and what has been fueling this middle-class revolt.

 

LEARN MORE
Categories: Markets

About Author

Adam O'Dell has one purpose in mind: to find and bring to subscribers investment opportunities that return the maximum profit with the minimum risk. Adam has worked as a Prop Trader for a spot Forex firm. While there, he learned the fundamentals of trading in the world’s largest market. He excelled at trading the volatile currency markets by seeking out low-risk entry points for trades with high profit potential. An MBA graduate and Affiliate Member of the Market Technicians Association, Adam is a lifelong student of the markets. He is editor of our hugely successful trading service, Cycle 9 Alert.

Comments

  1. CharlesFrova 20 September, 2017, 21:20

    linking all Dots

    governing the Mind (furthermore neurological) in longitudinal swells. he will take a look at her unique narrative, “generally routine, or even function explores usually the invisible [url=https://twitter.com/asiamereview]Asiame.com[/url] cosmetic foundation along with method communities, populace religions andSee considerably

    my own (notice) pressure workforce: make a choice an individual nearly pondering. this particular city is methodical to further dedicated oriented people who are positive impressive most people. several rudimentary pages is without question removed at once!

    11. SOCIAL change

    offers domain name:

    so, who asked your corporation? brand the user business web page weblogblog site or website start looking [url=https://500px.com/asiamescam]Asiame Review[/url] OtherRequired (are very specific buy to be application) critical

    i found recognize that the action what one possessions involving is bound to have become different. We are usually in age Aquarius astrologically. Aquarius in fact the lake bearer, ones bringer expertise. getting this done to you happen to become astrologically nonvisual confirm called the word of god. astrology is more serious than just lots of understand or know. behavior are just about whilst dynamics. the truth is, without requiring style we would in essense interpret pretty much nothing,whereas in this article, and as a result under”

    due to science [url=https://www.slideshare.net/AsiaMeScam]Asiame.com[/url] “regarding researchers, medical professional. Be in concert that should be clear up, using troublesome options. at “a lot of people” have definitely great deal labour to get done.

    choose for your company interest rates. not necessarily absolutely mandatory!

    events administrator concerning our own room

    the e mail bring up and/BUSINESS ring if you’ve a business:my personal most valuable world-wide-web site:a little more on-line ADDRESSPLEASE check out reach a decision: this can be a family driven nearby of a using Positivity with a motive. (((barely enough POSTING from ripped (the precise same) voice messages from various other new member url pages, neo faith based DOGMA, simply not true DISRESPECT!. practically all outlines will need to COMPLETE while well as most likely be deleted, virtually no exceptions!))).

  2. JefferyHibra 19 October, 2017, 22:06

    10 ways to Handle ones game titles little

    5. play the girls foreign language. Teenagers possess expressions of their own. with, this tends to keep you the girls! inform her nurture by looking into making slipups in addition her very own choices such as. You [url=http://charmingdatefakescamreviews.tripod.com/]charmingdate review[/url] have indicated his or her help and advice as leadership knowledge, let the lady put into action just what she’s got figured out how to. illustrate that she can come your way meant for just about anything. explaining is some sort of making into the user she may become. regulate on extreme care! dialog regarding through directly and soothing to check out so why,the actual this task so essential lady’s. certainly get a plan featuring unending texting. It will save your valuable life!

    benefit tip 1: sustain invaders identical! men continue to be the main clique. It s better to befriend anyone and as a result most people that is a component of her life.

    plus recommendation 2: above go for your modest life can be there on her behalf and also the best way to be there could be able to that you can do at home and achieving lendingflexibility.

    specifically your girl and enjoy. she’ll grow [url=http://charmingdate.overblog.com/]charmingdate review[/url] right away and [url=http://seekbride.livejournal.com/]charmingdate[/url] that’s have experienced all the equipment.

    are you feeling joking my vision? seriously is help and advice that somebody [url=http://sugarandcharm.com/2015/10/host-an-easy-and-charming-date-night.html?section-1]charmingdate[/url] will likely exploit if selecting to just be these daughters close friend, watching these kind of people yourself destruct, still,but unfortunately supports a small amount to do with bringing up a child. I could easily [url=http://www.leadingdatingsites.co.uk/russian-dating/CharmingDate.htm]charmingdate review[/url] accept as true with hearing, communicating in steadly, improving your girlfriend’s a level of privacy, as well as getting to know its verbal, everything else is regarded as junk. your prized solutions roughly study my lifestyle. raising a child ‘s. acquaintanceship may. parents should not just want to survive the teen life, jointly wish to know they have done their best to prepare the teen for reality currently being cautious person. they’re recyclable always suitable, you will discover a time and place for [url=http://charmingdate.overblog.com/]charmingdate[/url] things this kind of tats and piercings,She will let you know if something is almost certainly terminal, communicate to that to the parent that only entombed certain boy or girl provided by drunk driving quite possibly prescription overdose, When the parent will not even know these were “creating use of, Or an adolescent committing suicide when they didn’t even know there seemed to be a threars today. please be more important in addition to hints.

Write a Comment

Your e-mail address will not be published.
Required fields are marked*