The $USD index has done exactly what I expected it would. It came back to the 35 day MA then broke out above the wedge and went on to break out higher to end the week on expectations that interest rates will rise some time this year. This is not a good thing in the long term however, because all of the important macro data is not supporting a recovery in the U.S. Only the data that can be manipulated higher has been showing sings of recovery. Who knows how this will end. All we can do is trade the levels as they present. I would not be at all surprised if there was a dollar devaluation in the near future and there would be no warning. This would cause severe shock waves throughout the financial markets. Just something I am keeping in mind.
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