USD US Dollar Weekly Chart Sideways Channel H&S

The dollar chart, to no surprise, is the inverse of the euro chart. Up euro = down dollar = up copper = up commodities = up oil = up equities. Down euro = up dollar = down copper = down commodities = down oil = down equities. The H&S pattern is larger than life on this chart opposite of the euro's inverted H&S. The pink H&S would target the lower support at 73.5 if the 78.5 neckline failed.  Note that the euro is at its neckline but not the dollar.  The 200-day MA is providing support at 79.3.  Price and the moving averages are lining out sideways reinforcing a further sideways vibe forward.  Ditto the ADX black line that indicates a trend is not in place, price is meandering sideways.  The indicators also display a sideways vibe.  Sideways dollar will mean sideways euro.

The blue sideways triangle shows price failure below the lower trend line but a second trend line is holding price in check. The dollar is 79.7 as this is typed sitting in the exact apex of that sideways channel. The dollar is going to have to choose a direction. For the lows from December to now, the indicators show slight positive divergence which encourages an upward bias forward. The path is the same as the euro, sideways, the dollar perhaps moving thru 78.5-82.0 into the spring and summer. Considering the need for equities to see a pull back, this would be in concert with a pop in the dollar right now, then a move lower in the dollar would correspond to the SPX moving back up over SPX 1500 for the next rally, then a roll over in equities would be anticipated with the dollar heading far higher as the year moves along. The pink H&S pattern at this time is not projected to come into play moving forward. Use the 200-day MA at 79.34 as an important bull-bear gauge. Market bulls are happy if the dollar moves under 79.34 and heads lower. Bears are happy above 79.34 and heading higher. If the dollar moves above the 20-day MA at 79.97 that is a feather in the equity bears cap and the broad markets will be in sell mode. 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.