The “Power of the Pattern” reflected that a potential “bullish Cup & Handle” pattern was taking shape in the U.S. Dollar on 11/30 (see post here)
Below is an update to this pattern made pre-market this morning…
CLICK ON CHART TO ENLARGE
The U.S. Dollar is doing its best this morning to break the handle channel to the upside. (Much could change by the end of the day, pre-market action though is attempting a breakout)
Next key for this pattern is the top of the Cup resistance, which comes into play at the 79.50-80 range, which so far the Dollar has been unable to break!
If this pattern read is correct and the Dollar breaks the top of the cup, investors will have to “handle” risk assets (stocks/commodities/metals) very carefully because they could be put under pricing pressure.
Lou…Thanks for your commmet.
If TA has worked for decades, in all asset classes, why would it all of a sudden not work?
I’ve been “riding the Power of the Pattern pony for well over 15 years” and she just keeps troting along, enlarging portfolios regardless of market direction.
Chris
Technical trading the dollar may not be that reliable considering the world situation. What may have worked in the past may not work now. I would not trust it.
Yeah, go clownbuck!
It’s going up because it’s so well managed! Thank god we have responsible folks running the cartel, uh, I mean the Federal Reserve that make our currency so attractive.
Go Dollar!!
“Emotion are out, Stops are in” – Oscar
yes Risk Management! so very important!
thank you
Investor…
TBF trade has a stop just below the breakout line…less than a 2% risk on this trade.
As you said, if wrong (which I will be) we won’t be wrong for long!”
C
“if wrong don’t be wrong for long”
would not inverse US Bond ETF (TBF) be considered a “Risk On” trade also