Back in 2008 the U.S. Dollar spent several months creating a series of “higher lows” before a large breakout rally took place. Same thing taking place again?
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After creating a series of higher lows back in 2008, the Dollar embarked on a strong rise, during the heart of the financial crisis meltdown. Keep a very close eye on the Dollar right now, as it “could” be creating a higher low, on support at (2). It has created a falling wedge at the same time at (2), the top line is so steep that I did not draw it on the chart.
Often times the largest rally takes place after a test of support has taken place, this is true for any type of asset! Should the Dollar find support here and rally, several key markets could come under pressure since support is being challenged across the board in this series or charts! (see charts here)