USD US Dollar Weekly and Daily Charts

The dollar weekly chart shows the upward-sloping channel with price near the top rail.  The green lines show the inverted H&S in play with head at 73, neck line at 81.0-81.5, so the target is 89-ish which will match the high from 2010, when Chairman Bernanke was stepping in with QE2. The neck line rupture is important so a back kiss to test the 81.50-ish area would be in order. Note the sideways symmetrical triangle we have been watching this year which resolved to the upside and the target would be in the 83-84 area, which has already been achieved. Negative divergence is in place over the six-month time frame except for the RSI which is sloping a hair higher. A spank down from the top rail of the channel has occurred over the last couple days in response to the negative divergence but another burst higher to tag the top rail once more at 83.50-ish cannot be ruled out. Overall, however, price should back kiss the neck line at 81.50-ish moving forward then resume the upward trek to 89.

On the daily chart, a closer view of the sideways symmetrical triangle this year shows the vertical side about four points in height so the target at 83.50-ish was achieved.  The green two-leg bull flag is playing out over the last month.  The bull flag target was achieved with the intraday spike but this pattern would be agreeable to see a closing print at the top rail of the channel. The move upwards in the dollar needs to take a rest in the short term, but before the pull back occurs, a short burst to 83.50-ish again cannot be ruled out. The equity markets move opposite to the dollar, so another small burst up for the dollar will equate to another move down in the broad indexes, but after any short burst higher, the dollar should pull back down to take a rest probably in concert with happy talk coming out of Europe. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.