As to the USD decision point referenced in NFTRH 811, we find it continuing to weaken after pulling back from resistance. What’s more, it is breaking down from the best interpretation of the daily chart bear flag (red channel). While it will not officially be a breakdown unless it takes out the May 16 low of 104.08, it’s not a good look for our dear anti-market Uncle.
A very key point here at the 200 day moving average and uptrend channel bottom. Then support around 104.10 and the previous (April) low just below it. If the script of the last couple of years holds true, and if the buck breaks down, it’s party on Garth. If it holds and whipsaws upward, likely the opposite. Again, a very key point with USD not looking good right now. Pattern geeks may also note a potential H&S on the chart measuring to about 101.80. That would activate if 104.10 area support is taken out.
Fundamentally, USD is a debt backed concept with an official title of reserve currency and a chronic fiscally inflating government behind it. It’s only real fundamental, if you can call it that, would be a market liquidation and liquidity grab, of which there is thus far no sign.
