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U.S. Dollar has spent the last few years building the flag/pennant pattern in the chart above. Investors have benefited by buying on support and harvesting at resistance. For the first time in a few years, investors are attempting to break support of this pattern.
Often on a break of support, a rally takes place to test support, as resistance. Odds would favor a small rally at least in the Dollar here, to perform this key test. What happens at this test, how the Dollar acts, will need to be watched very carefully! If the Dollar can’t even rally to test resistance, it is in pretty big trouble!