9/25/2015: USDOLLAR Daily
Markets oscillate, not just between highs and lows, but also between trends and ranges. The rally into March (trend) was succeeded by a sideways range. That range has taken the form of a triangle with a long term median line and 200 day average providing support. The energy created by the last 6+ months of sideways trading could produce the next directional move but pay attention to uptrend resistance (line with the red circles on it…this line was also support in March) for a failed breakout. Seasonal tendencies are bullish into late November but then turn bearish into year-end. Viewed in this light, the USDOLLAR index could grind higher for the next 2-3 months before realizing a decline that leads many to question the integrity of the multi-year bull trend. A price to keep in mind is 12305, which is the 127.2% expansion of the March-May decline. Uptrend resistance intersects this price in late November / early December.