USD US Dollar Index Daily Chart Inverted H&S

Dollar daily chart allows a closer look at the inverted H&S's. The blue lines show a head at 73 and neck line at 76, thus, when 76 is broken to the upside, the target would be 79. The red inverted H&S shows a head at 73 and neck line much higher at 81, thus, should 81 become pierced to the upside, the target is 89. The green lines show all the indicators very positive and constructive for upside for the dollar.

The ADX shows a strong down trend was in place during October 2010, so the move down in the dollar was real and had legs. Note how price did come down to make the May 2011 bottom verifying the projection of the ADX strength. The additional peaks in ADX at 30-35 were tenuous concerning price action, showing that as soon as price was trying to sustain a strong trend, the ADX fell lower again. Thus the dollar has simply motored along thru the 73-81 range for a year without any strong trend in place (despite the price move down that occurred). This confirms that the charts are in tune with bottoming now and constructive for the upside moving forward.

As the dollar moves up, it will serve as a trigger for Chairman Bernanke to announce QE3. Price projection is upside ahead, the 76 neck line will give way ushering in a move to 79. 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.