With Today’s DecaPip daily I thought I would bring to you a USDollar special edition.
Those of you who read the DecaPip Weekly regularly will know a number of key levels I have market out in the major currency pairs and also the cross pairs across the charts.
With this in mind and the United States Federal Reserve meeting nearly upon us it is potentially wise to focus exclusively on the USDollar index.
I would like to show you two charts. One a 4 hour time frame and the other a Weekly chart, each with some brief commentary.
4 hour USDollar Chart
From a purely visual point of view we can see that the USDollar is trading inside an Inverted Head and Shoulder pattern on the 4 hour time frame here. This in itself is to does not mean that the pattern does have to play out, but to me a key give-away that tomorrow there is a strong likely hood of a strong directional breakout occurring.
Weekly USDollar chart
On the weekly chart what I can see as a market technician is that its now trading in a smaller upward range band than usual since the large upward breakout last summer. We can hypothesize that a break outside the trading band would cause heavy USDollar selling.Ideally we would look for a weekly close outside the upward for some confirmation of this break.