We have been highlighting the longer-term rising wedge pattern in the USD Index (cfd) as a harbinger of weakness in previous posts, and this week we see that price has successfully validated this pattern. From a technical perspective not only has the USD Index (cfd) broken below wedge support but has also, broken again its 200DMA (indicator investors track religiously) and closed below the 95.915 pivot low. As long as 95.915 is not retaken and acts as resistance, we currently have no reason to doubt this important technical development and would expect more weakness for the USD.
1. #USD Index (cfd) – Triple whammy!
2. USD weakness broad-based and outside week candlesticks amongst G-10 currencies plentiful!