USDOLLAR Index Top Taking Shape

The USDOLLAR Index has exited its broadening wedge to the downside, reentering the bull flag that governed price from November through early-January. Watch for a close below 12180 to confirm a break of last week's low and a failed topside breakout overall. Daily indicators are eroding as well, with daily MACD and Slow Stochastics having given up their bullish momentum. Further downside seems likely, especially as USD/CAD edges lower.

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