One of the most important charts on the planet is the US dollar as it has such a big impact on many different areas in the markets. This week the US dollar hit a new high and closed above the top rail of its sideways trading range. A true breakout is generally confirmed when the price action closes at least 3% above the top rail of a consolidation or reversal pattern.
I expect to see some backing and filling above the top rail of the black rectangle and if the breakout is going to be valid the top rail of the rectangle consolidation shouldn’t be violated by very much. The setup is there for the rectangle consolidation pattern to be a halfway pattern to the upside measured from the May 2014 low.
There are a lot of pieces of the puzzle I’m going to try and put together in the Weekend Report to show how these possible inflection points, we’ve been following now for several weeks in the PM complex, may develop. The US dollar will be playing a key role on how things may payout. Have a great weekend. All the best…Rambus