A Bullish Breakout in the US Dollar Index

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A Bullish Breakout in the US Dollar index

The US Dollar Index has been consolidating this week after reaching a new high on the year at 90.15. However, after the Christmas holiday doll drum, it looks ready to continue its bullish ride.

We can see a flag pattern breakout in the 1H US Dollar Index (USDX) chart after Christmas holiday trading. Price now looks ready to break 90.16. If it doesn’t let’s see what happens in the 89.80-89.90 area. If price falls below 89.80, it is likely in further consolidation. A hold above 89.90 keeps the upward pressure on 90.16.

A break above 90.20 is likely going to open up the 92.50-92.65 highs from 2004-2006.

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Fan Yang has been a professional forex trader and analyst since 2007. He specializes in technical analysis and has a Chartered Market Technician designation since 2011. He was the chief technical strategist at CMSFX He was also the founder and chief currency strategist at FXTimes Over the years, Fan has not only been a trader and analyst but also an educator. As a proponent of both technical and fundamental analysis in trading, Fan advocates simplicity and discipline as key factors in making trading decisions when faced with so many "clues" and "signals". Currently Fan Yang is the chief currency analyst and webinar instructor at forexminute.com.