USD US Dollar Index Weekly Chart; Neggie D Spankdown Continues

Here is a look at the USD dollar chart that receives the neggie d spankdown as previously described before it happened. There is no big science to it. The red lines show how price makes higher highs each week and then matching and slightly higher highs into October. However, there was a problem. The green back was out of gas.

As price makes the new highs, all of the chart indicators negatively diverge sloping down proclaiming that they are out of gas. Price makes the higher high on fumes. Remember, when the last dollar chart was posted, Keystone talked about the rampant bullishness for the dollar. When everyone is on one side of the boat, you know what happens. The chart receives the neggie d spankdown.

The red rising wedge is a bearish chart pattern. The RSI and stochastics were also overbot agreeable to a move lower in price. USD violated the upper standard deviation band so the middle band at 109, which is also the 20-wk MA, was on the table and the lower band at 104. Price slices down through the middle band at 109 like a hot knife through butter.

The buck's downward path stalls as the RSI slopes higher but the other indicators remain weak and bleak so the dollar is on track to make lower lows in price on the weekly basis. The middle band and 20-wk MA is an important S/R line so it would make sense for the dollar to come back up for a back kiss at 109, and then for the bottom to fall out.

The lower band and the 50-wk MA are moving higher at a pretty good clip and likely converging at 105 over the next couple weeks. 105 is also strong price support. The Aroon remains euphorically bullish so a bearish cross is probably another month or two out.

Now that the spankdown occurs and is in progress, you want to watch for positive divergence to form to call a bottom on the weekly basis but that is not happening as yet. Stirring the above analysis in a bowl, and sprinkling on some voodoo dust, serves up a scenario where the buck is buoyant and sideways a few days, maybe quickly popping to 109 on some news, then down to 105. The negative indicators will need a few weeks to resolve so price would probably bounce from 105 for a week or so then down again through 105 to 101 which may serve as the destination 3 to 6 weeks out so that would be December/early January. This is when possie d will likely form marking a bottom but there is no need to guess; simply watch the chart develop.

Looking at the USD monthly chart, it topped out with the 2-leg bull flag, very symmetrical. First leg from 80 to100, then sideways consolidation flag through 90-100, then second leg begins from 90, breakout at 100, target 110, achieved. The monthly chart does not appear interested in the dollar coming back up for more new highs. Instead, the monthly chart indicates extended down for the greenback probably from now through next year into that 90-100 belly again. Keystone is not trading the dollar currently. 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.

Note Added Thursday Evening, 11/17/22, at 7:30 PM EST: The dollar comes down to sniff around that 105 support to 105.15 and bounces to 106.59. The dance continues.

Note Added Monday Morning, 11/28/22: USD 105.25.

Note Added Thursday Morning, 12/1/22: USD 104.90. 104-handle first time since August.