The buck stops here! As the reserve currency, the U.S. Dollar wields some power in the currency market. And a strengthening dollar will likely put more pressure on the Euro.
We can see this already occurring in today’s chart 2-pack.
On the left, we can see the U.S. Dollar breaking out of a bullish declining wedge pattern (1). This should lead to more upside.
Meanwhile, the Euro kissed the underside of a “broken” wedge pattern – resistance at (2). The Euro was rejected swiftly… will this lead to more downside? As I wrote about last week, this is deja vu for the Euro!
The PowerShares DB US Dollar Index Bullish (UUP) fell $0.01 (-0.04%) in premarket trading Friday. Year-to-date, UUP has gained 1.37%, versus a 1.93% rise in the benchmark S&P 500 index during the same period.
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