3. Â US Dollar Index – Possible Head & Shoulders Top
The US Dollar Index (CURRENCY:USD) has got the making of a potential head and shoulders top; left shoulder and head have been put in, and a possible right shoulder is in progress; the neckline has support around 99. If it follows through and breaks the neckline it could open up about a 4 point move based on the head vs neckline measure rule; that would put the price target around 95 …right back in the old range.
Aside from that, the latest rally failed to break upper resistance, and is even struggling with the 101 level, so either way there should be doubts on its strength. Â Overall technical view: Bearish bias on the basis of a potential H&S top.
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