US Dollar Forming A Bearish Triangle Pattern?
King Dollar could be creating unhealthy bearish pattern
by Chris Kimble
The current news addiction of late revolves around Greece, closely followed by how the Euro will react this situation.
Taking a step back from the Greece noise, I wanted to take a look at the price action of the US Dollar (UUP) over the past few months.
The US$ looks to have broken support and kissed the underside of old support as new resistance at (1), creating a third lower high. These lower highs could be the top of a bearish descending triangle pattern. (See Descending Pattern below)
Over night the US$ was strong for a while and the Euro was weak, yet a small reversal pattern might have taken place at (2).
From a 30,000 foot view, if the US$ is forming a bearish descending triangle pattern and support breaks at the 93 level, the measure move suggest the US$ declines to at least the 87 level.
With all the uneasy news coming out of Europe and Greece, is it really possible that the US$ could start acting unhealthy and turn lower and the Euro actually start acting stronger?
These patterns are made from billions of free thinking people...stay tuned to see what they do, because what the US$ does at falling resistance, could send a key message for how all of us should construct portfolios going forward!
Courtesy of philstockworld.com