Trend-following the US Dollar Index 'DXY' from its Pivotal price point and reversal formation since the week of July 01 has proven to be a classic pattern where the first signal came through and a follow-through breakout came after the prices stayed above the all important key price level @80.05 on the way higher.
Daily DXY & Weekly Comparative Overlay Chart
Likewise, the shortened trading week on the fourth of July have given the USD Index a typical symmetrical triangle formation on a technical perspective from the its previous corrective price move with a registered low @79.74 basis point figure as shown on the green-circled of a reversal three bar cluster-formation. This is over and above of the positive jobs numbers that fueled the US Dollar recovery and the rally on the Dow Jones Industrial Average & SP which is nearing the 2K mark.
However, the more important process of Cipher3 Analysis is comparing the DXY with the corresponding Futures prices with DXU14 & DXZ14.pdf (On Demand Subscription on Website) where the actual confirmation signal of a probable breakout to the upside was in the making; when the Price Reversal couple with volumes have shown on their respective charts in the attached link of a PDF file on the DX Futures.
NOTE: Monitoring the Futures DX is a sequence of process where the objectives of the prices can either be achieved in reaching their respective supports and resistances ahead of the spot DXY. In these two contract months, the registered lows both dated last 05.08.14 were @79.05 for DXU14 & @79.24 respectively. These reference points are part of the variable reference of importance.
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