The US Dollar made a big move higher over the summer and spent much of October consolidating those gains. Is it ready to move higher again?
On September 12th, 2014 I wrote about the strength of the US Dollar. In that post I commented on some characteristics of the Dollar’s move higher that indicated more upside was coming. I highlighted a couple points of interest around bullish consolidation phases:
- 2 areas of consolidation preceding upward moves.
- The consolidation periods were relatively short; 14 sessions and 6 sessions.
So how’s the US Dollar been doing in the last 6 weeks? Well, it’s still strong in my eyes.
As you can see in the chart below it’s currently making new multi-year highs. And, after the Bank of Japan’s announcement last Friday, the Dollar shot higher. And it may have more room to the upside.
- Current target = 87.485 (this was hit on Monday)
- It is worth noting that there is an open gap at 87.74 on a weekly chart.
- On the same day that gap was created, a 5 year high was put in at 88.905.
US Dollar Index 1 Year Daily Chart
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No position in any of the mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.