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!!!