Thursday, July 14, 2011

Friday Dollar Analysis

Last week, I noted that the dollar was in a classic consolidation pattern. This is the same observation made by Corey over at Afraid to Trade. I also noted this week that the dollar had broken out of its consolidation range.

However, as the chart below illustrates, prices are back into the triangle pattern, meaning the break-out earlier this week was a false breakout.

All the EMAs are in a tight bunch, indicating a lack of overall direction from the market. This means last weeks break-out was a false break-out, and we're left waiting to see that happens.