U.S. Dollar Takes Overbought Conditions into The Holiday Weekend

The dollar index is quickly reaching the upper levels of the top of its Donchian Trading Channel and is in an overbought condition. We expect that this combination will be enough to halt the current rally. At the moment, our Trade Triangles are presenting a mixed picture for this index. We believe that this market is still in a broad trading range with resistance coming in around the $75.00 mark. The index remains below its 200 day moving average, while our longer term Trade Triangle remains positive.

Monthly Trade Triangles for Long Term Trends = Positive
Weekly Trade Triangles for Intermediate Term Trends = Negative
Daily Trade Triangles for Short Term Trends = Positive
Combined Strength of Trend Score = + 75