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Even though the Debt ceiling debate continues to be very important and dominates the news headlines of late…the price action in the U.S. Dollar over the past couple of weeks has become very important from a pattern perspective, in my opinion, per it has a bearish look to it!
A positive for the Dollar…. after breaking below channel support line (A) the Dollar did not fall apart!
On the flip side it has struggled of late getting back above the new resistance line, creating one of the larger bearish wicks in years at (3). Two weeks ago long Dollar players attempted to break this resistance line and so far it appears they ran out of gas very fast.
Most bearish weekly pattern in years was highlighted in the post (see scary opportunity here)
Stock market remains caught in its “Ground Hog Day” pattern of late (see groundhog/repeating post here)….creating bullish wicks at channel support and bearish wicks up against channel resistance.
Not a big stretch on my part to say that this should be a wild week and the debate issue should toss the markets back and forth, depending on the news leaks out of D.C.