EDGE Chart of the Day 1-8-15 DXY (USD Index)

08. January 2015 · 2 comments · Categories: EDGE Chart of the Day · Tags: , ,

I have to break today’s EDGE Chart of the Day into two chart. First is the daily chart od the USD Index, DXY:

1-8-15DXY2

As you can see in the “Daily Chart” We have completed two flag patterns. But what is more important is the weekly chart:

1-8-15DXY1

We have rallied to major resistance (blue line) from 2005, and very close to the highs at 92.63. (overnight, the high was 92.52).

I suspect the recent run higher in the USD has run its course, or it is close to running its course. There are 3 key events at the end of the month. ECB Meeting January 22nd, Greek elections the 25th, and FOMC Meeting on the 28th. After such an amazing US Dollar bullish run, I suspect that the market could get a little choppy as we complete this major technical pattern so close to key resistance ahead of these key events.

Blake Morrow

Chief Currency Strategist

 

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