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Shared a couple of days ago that the Dollar might be forming a “Bullish Cup & Handle” pattern and that it was testing support as it was creating the handle. (See post here)
This morning the Dollar is hanging onto a thread of support at (2) in the above chart and creating a small bullish wick. Dollar bulls need this support to hold, to keep the cup & handle pattern in play.
I don’t believe in charting 2x ETF and making decisions based upon them. These ETF’s, due to their design have pricing issues and errors, which creates faulty charting errors.
DAG long X2 Agriculture & AGA short X2 Agriculture have this same mirrored formation with lots of other goodies
Agriculture knows something
* leveraged ETNs
UUP & TLT look to have a Cup & Handle, FXE the inverse
Will the handle break the cup rim, in the fullness of time we shall see
Aaron…above my pay grade on the micro move you questioned. These charts, from start to finish take this ole man a while to create. Dollar was hitting support and I tried to get the chart out ASAP.
It looks like the dollar might have heard you loud and clear because I swear that UUP went from negative 0.2% to positive 0.50% in a blink of an eye. Markets also cut 50% of its gains as well.
Any reason why?
Aaron