- You can see that the dollar has lost its grip on the blue short-term uptrend line.
- It went under support 1. It is now testing support 2.
- This breakdown is good for gold and miners
- Surprisingly, it has not been as good for oil and oil-sensitive stocks. WTH?
- Just because the dollar looks like it is breaking down, don't punch its ticket yet. The dollar has come back from the Cliffs of Doom© More than once recently.
UPDATE: I just finished the other chart when I realized that UUP (and the US dollar) seem to be breaking the neckline of a head-and-shoulders pattern. Initial target for the breakdown would be $24.25 to $24.
To be sure, after breaking a neckline, it's often the case that the broken neckline will then be tested as overhead resistance before the final swan dive.