Yesterday the “Power of the Pattern” suggested to keep a very close eye on the Dollar, as it was testing support in the “Cup & Handle” pattern (see post here)
Below is an update on the Dollars overnight and early morning action.
CLICK ON CHART TO ENLARGE
The day is very early and could swiftly change…. so far this morning the Dollar has created a rather bullish wick at key support levels! At the same time this key currency action is taking place the rally in the 500 yesterday did nothing more than push it closer to falling resistance, at the top of its falling channel and the VIX index might be forming bullish falling wedge during its decline of late.
The Boy Scout motto is to “Be Prepared.” Should the Dollar hold at support/top of the cup and start pushing higher at this juncture, the pattern in the 500 and VIX would suggest this is a very good time to “Be Prepared” for large price movements in the near future!