One of the attributes of a breakout from a lengthy consolidation period after a major price action is the prevailing market sentiments remains stable. In essence, a bullish or bearish breakout would normally have a follow-through after the consolidation.
Unless a contrary fundamental over the prevailing market trend would indicate otherwise. That is why it is quite important to monitor the weekly COT traders report wherein the data between long and short positions are identified alongside the volumes and open interest defined for speculators & institutions alike.
With that said, the USDx opening price levels have lost its ground from a session to session basis since the opening gap from last Friday's closing of 81.35. And has maintained it levels while both European majors of the Euro & Cable have rallied to this point. This clearly marks a similar configuration a indicated on the DXY chart; where you can find an opening gap higher from previous close dated May 07, 2012; and gradually losing ground during the session.But kept its closing price above the previous day's closing of 79.55 The same is being traded today Sept. 05, but since this is a live market and we still have a few hours ahead in the trading; as long the daily closing would be above the previous day's close then the USDx interim rally will hold until further developments would say otherwise. Pls. view chart.....
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