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USD 1Q Forecast: US Dollar Breaks Multi-year Trend Support – Looking for a Low
One of the most significant technical reactions this past year was in the US Dollar Index. For years now we’ve been tracking the 2011 support trendline with parallels of this slope defining every major turn in the Dollar since the 2014 breakout. A test of the upper parallel / 2016 high-close at 102.99 during the height of the Covid crisis in March was followed by a massive yearly opening-range reversal with the July break below the 2018 parallel fueling a decline to multi-year lows in August. The 2011 trendline held for three months before crashing lower in November. This breakdown constitutes the first major break ... (full story)