US Dollar is Stuck Inside Two Pennant Patterns

Today's chart of the day is without a doubt Chris Kimble's annotated US Dollar Index. The recent "choppy and directionless" action in the Dollar has clearly had an impact on the broad stock market. I would expect further consolidation in equities until the Dollar Index breaks out in one direction or another.

The chart below shows the US Dollar inside a typical pennant formation from Q4 '11. This corrective pattern also falls within a much larger pennant that goes back to Summer of 2010. The current price is quickly approaching the apex of the near-term pattern so I would expect a resolution to come soon:

*Note - the US Dollar Index is up 9 days in a row going into today. 

Source:

US Dollar Back at Resistance That Has Turned It Lower Since 2010 (Chris Kimble)

Tags: $UUP $USDX