We had the US dollar in a bullish pattern back in July and wouldn’t you know a sharp rise came in concert with a stock market drop. The US market, like others in the developed world keys off of policy making and its ability or willingness to [pick one... mute, compromise, repress, devalue...] the currency. So the sharp rise in July did not go down well with asset markets.
As the stock market bounces it is not surprising that Uncle Buck has consolidated above the pattern neckline. MACD and RSI look suspect and if USD rolls over the stock market could continue to benefit. A strong visual support area is noted at the moving averages.
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