Once assets break resistance, quality moves often come after old resistance is tested as “new support!”
The Dollar this morning is testing old resistance as new support for the first time this morning in the chart below.
CLICK ON CHART TO ENLARGE
The “Power of the Pattern” pointed out a few weeks ago a “bullish cup & handle pattern” looked to be in the making(See post here). Now the top of the cup is being tested as support this morning.
Keep a close eye on the Dollar the next few days because the end of year allocations and the first few weeks of 2012 will most likely be driven by what happens with the Dollar at support!!!
Hello Kimbler. If possible, please, put a analyses of emergents markets (Brazil). Thanks for this. Great job and congratulations for all analyses tecnicals on the blog. =)
Aren’t commercial hedgers bullish on the Euro right now? (And individual traders are bearish on the Euro.) Doesn’t that mean there’s a good chance we could see a massive Euro short squeeze that might take us to SP500 1300 or so?
Looks like it held………….for today and it looks like it bounced off a Fibonacci retracement line at today’s low.
i`m a portuguese guy that every night take a look on your charts.
i like very much your work.
i agree with your pattern on the dollar, but that cup&handle could be also the RS of a Inverse H&S ?