The US dollar is going to break down from the wedge this morning. The green arrows show that it made a higher low and a higher high in September, keeping a lame short-term uptrend in play. The black arrow shows where Uncle Buck seems to be headed today. A lower low should be watched for signs that the buck is finally giving in to policy makers’ implicit lack of support (some would call it an antagonistic stance).
It is not lost on us how well commodities and precious metals have been bouncing, along with certain global areas to which a weaker USD is beneficial. Sit back and enjoy the show. Unc is either going to hold a higher low or accelerate a downtrend soon. Meanwhile, the Euro continues to look constructive, at least.
From @E_Lefeuvre comes this interesting graphic on the Fed’s awareness of the US dollar.
Thanks again goes to JF, my Twitter monitoring arm. ;-)
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