CLICK ON CHART TO ENLARGE
The sharp decline in the Euro and near vertical rally in the U.S. Dollar over the past year has been rare. This chart looks at the U.S. Dollar over the past 30-years.
From a Power of the Pattern perspective, two things stick out at this time. The rally over the past year has the 52-week rate or change (bottom of chart) hitting a level that has been hit few times in the past three decades.
The rally in the US$ has it facing a cluster of resistance at (1), as a resistance line drawn off prior key highs in now in play.
In my humble opinion, if the world finds comfort in owning the US$ and pushes it past the resistance zone at (1), the Euro could really be in trouble.
With sentiment at extremes (91% Dollar bulls/Euro 14% bulls) this price point become a little more important than usual!
See more of our research…..HERE