With the FED raising interest rates yesterday and setting the expectation there will be 3 more in 2017, the dollar as projected ripped higher and confirmed November 21st breakout from the (blue) rectangle. The ongoing saga of whether the dollar has topped or just consolidating for its next move higher can finally now be put to bed after 95 arduous weeks.
Those that follow know rectangles are my favorite patterns to invest in as the lines for buying and selling are easily determinable, as are the targets. In this case the pattern break and confirmation projects to an upside target of ~$108. On a much longer term view, if this current breakout turns out to be a continuation from a very long term bull flag, that target is north of $120.
I have been talking about the possibility of the USD testing all-time highs since it broke out of long term consolidation in mid-2014. Not wanting to repeat myself but I do because the implications are huge. It is THE elephant in the investment room and should not be ignored. Understanding the intermarket relationships (correlations) between your investments and the dollar will be valuable knowledge and keep investors on the right side of the track going forward while king dollar pushes higher.