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Pre-market this morning the Dollar is moving higher, yet has created a upside wick due to the 23% Fibonacci resistance level.
The rally in the Dollar is putting more downside pressure on equities early this morning.
A PAUSE AT LEAST at the 23% Fib level should be expected, which could give some relief to equities…. yet with the Dollar just breaking from the flag and key falling resistance, the 76.50 level should be taken out down the road.
Getting past Fib resistance will really challenge the risk trade!
I’m often impressed by your choice of support/resistance lines. Not sure how you select them but they are unique and I try to emulate my charting with that.
On my chart I also drew a channel from the consolidation lows (March 2008 to May 2008) and the consolidation highs (from June 2008 to June 2011) before the the 2008 breakout took hold and the economic/market downturn came on in full force. I found the dollar (dxy)is has been testing the upper channel the last few times looking to breakout.
Thanks for the great charts.