DXY: The Mother Of All Breakouts Looming?
It seems for years I have been banging on about the Dollar Index and that dam overhead resistance at 97.50. Hundreds of Instagram videos and countless articles later, it breaks on a day that no one would have expected it too and presumably a lot of people would have missed this breakout as well.
Technically, we have broken above our resistance level very convincingly with two impulsive daily candles. At the time of writing, we look to be decelerating around our next minor resistance seen at 98.25, all things being equal we could look to re-test our major level of 97.50 which has turned into support.
The reason why I am “harping” on about this breakout so much, is what it means for the Dollar going forward. The breakout opens the door up for a move to 100, psychological round number and next resistance level. There is not much resistance in the way from 97.50 to 100.00 if any in my opinion.
Failure for the breakout to hold would result in more consolidation for the Dollar Index and no one wants that, less volatility and more sideways movement! As traders, this breakout should really get you interested in “what's to come” it could signify a renewed rally in the greenback for some time. Be prepared for the next 3-6 months!...