On July the 31st in the chart below, the Power of the Pattern was reflecting that the U.S. Dollar was due a pullback for two key reasons...a bearish rising wedge was taking shape and too many investors were bullish the Dollar (see post here)
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The chart above reflected that the Dollar was inside of rising channel and looked like it first needed to decline for a while, before it would advance any further. Below is an update to this key pattern.
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The Dollars decline is helping push risk assets higher and hurting bond prices (see two-thirds chance bond prices move lower) This trend should continue for a while until the Dollar gets closer to rising support and works off the crowded bullish sentiment situation.
