US Dollar Index (USD)

The US Dollar Index has an inverted head and shoulders pattern forming on its day chart. To say the dollar has been a dog is of course an understatement, but there is hope for a more significant move than seen since the first week of 2011. A breakout above 78.50 would give us a theoretical target at near 80, but we’ll settle for 79.50 or so for now. A daily close below 77.50 will however reduce upside aspirations for the dollar.

If the USD Index does break up, it should send USDTHB to 30.93 to 31.00 quickly, with a decent chance 3130 will be hot before long.