CF: US Dollar Trade Alert: Chart posturing setting up for lower prices, 4-hr chart in focus
We had been using trend support extending back into June to guide our bullish trades higher on two occasions with the June high of 12043 as our target objective. Once the index finally made its way towards resistance, momentum left something to be desired, and it was noted a pullback could be in order. Indeed, the USDOLLAR Index declined towards trend support, however, on this occasion the previously steadfast level was breached then giving us at the very least pause to be bullish. Following a bounce and retest of broken support the right shoulder of a ‘head-and-shoulders’ was formed. This morning the pattern neckline is on the verge of being undercut, indicating lower prices to come.
