When I last looked at the US Dollar on Thursday, the currency was setting up for yet another bullish breakout, showing an ascending triangle pattern with resistance at a familiar spot. That breakout has continued to run and we even saw a fresh high print yesterday, with DXY finding resistance at another familiar level of 113.50.
Short-term price action in the USD retains a bullish lean at this point, but, notably, there has been underside resistance from the bullish trendline that guided the ascending breakout last week. Prices tried to pose a deeper pullback yesterday but quickly pushed back-up to resistance after Andrew Bailey sent a stern warning to UK pensions. Current resistance at 113.50 has already been tested, and there’s another level above that at 113.82. Beyond that, I’m tracking another prior swing at 114.28 after which the current 20-year-high comes into play, plotted at 114.78.
