Follow Up: The U.S. Dollar

Yes, the U.S. Dollar Index broke up the resistance line, but hey, it comes back down again.

It is still possible for us to witness a downward climax run of the dollar, and a conjugated upward climax run of the S & P 500 Index. Technicals supporting this call are:

1. The sharp bounce offs (blue arrows) mark a strong resistances (horizontal blue line).
2. The dollar had a good rest in the consolidation area (pink box) and could run for a longer distance.
3. A steep trend (blue lines) is formed. The dollar stays on the lower channel longer and touches the upper channel briefly, suggesting the trend is strong.
4. The dollar broke down the support (red line) today (marked by the red arrow).

Yes, the last piece is weak as it only broke the support by 1 cent. So what we want to see tomorrow is a decisive move below the support and, more desirably, stay on the lower channel of the trend in the near future.

At the end, it's noteworthy that tomorrow the Fed will conclude its two-day meeting. All the financial markets are waiting for it to make decisions.