USD US Dollar Index Daily Chart Inverted H&S Ascending Triangle

Many traders have been playing Taps on their trumpets for a couple years now for the dollar, but the demise of the dollar is greatly exaggerated. Note the blue lines showing the inverted H&S now in play that targets 79-80. Of more importance currently is the red lines showing an ascending triangle forming over the last three months. Price is currently testing the bottom rail at 74.5-74.8. The triangle shows the importance of the 76 level, it is the triangle's base line where the break out will occur.

The 20 MA is above the 50 MA which is bullish. Note the RSI mimics the ascending triangle vibe. The stochastics and ROC, however, favor more of a sideways symmetrical triangle vibe which favors more of a sideways tone in price. Projection is for a bounce off the bottom rail here and up towards the 76 breakout targeting 79 for the triangle pattern. This target coincides withthe H&S target of 79-80 as well. As this move up occurs for the dollar the following asset relationship should play out; dollar up=euro down=equities down=commodities down=treasuries up (yields down), in other words, a deflationary scenario. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here or any links connected to this information. Consult your financial advisor before making any investment decision.