OK, consider this:
– We made the first peak in this area five days ago when we hit major resistance.
– We've been chopping around since in a narrow range.
– We broke that range with a spike down yesterday which has been quickly recovered.
– USD may well be in a significant wave up.
What does that say to you?
If we had a rising wedge (and no QE2) we'd be shorting the hell out of this. Sadly no wedge, just the Fed.
Something to think about though. Here are two very thought-provoking USD charts:
USD Current Declining Channel:
USD 20Yr long term view with current triangle
I've been charting the DX futures rather than $USD in recent weeks but on $USD we just hit both the bottom of the declining channel and major triangle support. If we're going to see a big reversal on USD, that was the place to see it and so far it has bounced.