6 Reasons the US Dollar Will Keep Running Higher

• Posted by Greg Harmon
• on December 24th, 2014

The US Dollar Index rose to a Double Top at 120 in 2001 after a 6 year march up. It fell back from there over the next 6 years. Then it did not do much for the next 6 years. But 2014 saw it start to perk up again. Time for another 6 year run higher?

It sure seems to be the start of another run higher. And the monthly chart has 4 other indications that it will continue. First, the break of a Symmetrical Triangle to the upside targets a move to about 104. Next, the price action is pushing through the 38.2% retracement of the down leg. The next target would be a 61.8% retracement, or to about 101.50. Third the month is looking to print a bullish Marubozu candle, a strong signal of more upside price action.

Also, the price is above the 50 and 100 month SMA’s. This has coincided with bullish action in the past and it is confirming strong with a move over the 200 month SMA this month. Finally, the momentum indicators RSI and MACD, are both bullish and rising, support continued upward price pressure.

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