Last Friday the “Power of the Pattern” was reflecting that the U.S. Dollar was breaking support on a daily chart and looked to be creating a rather bearish upside wick on a weekly chart…both suggesting lower U.S. Dollar prices were ahead (see post here)
CLICK ON CHART TO ENLARGE
Why has the risk trade worked this week and Interest rates headed higher/lower govt bond prices? Odds are high the breaking of support by the U.S. Dollar has much to do with this. The upside bearish wick last week was not bullish for the Dollar and the break of support has brought in a ton of Dollar Sellers the first 3 days of this week.