If U.S. Dollar Breaks Out, Euro Meltdown Will Accelerate
Chris Kimble | Jan 26, 2015 10:17AM ET
The sharp decline in the euro and near vertical rally in the U.S. Dollar over the past year has been rare. This chart looks at the U.S.dollar over the past 30-years.
From a Power of the Pattern perspective, two things stick out at this time. The rally over the past year has the 52-week rate or change (bottom of chart) hitting a level that has been hit few times in the past three decades.
The rally in the US dollar has it facing a cluster of resistance at (1), as a resistance line drawn off prior key highs now in play.
In my humble opinion, if the world finds comfort in owning the US dollar and pushes it past the resistance zone at (1), the euro could really be in trouble. With sentiment at extremes (91% dollar bulls/euro 14% bulls) this price point become a little more important than usual!
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