US Dollar direction implications

Happy New Year Up, everybody had a nice holiday, we’ve talked about the dollar index want to bring it back to your attention here. Now that we’re at the start of the new year and what we are looking at and its potential implications. So this is a weekly chart of the dollar index on the left hand side daily chart on the right hand side, it’s very clear or hopefully should be clear on these levels that we’re watching. So this is a longer term weekly area of structure that and that is untested, or has not been touched on the weekly, these yellow lines represent the monthly so we potentially do have a little bit of overhead higher overhead here into this 98 to 100 level. But this area right here did indeed pause as we projected, pulling up a little bit today, right now it’s at 9620. We also have looks to be like a 50% retracement level over here on the weekly. And we know that this time of the year, we typically see weakness in the dollar index. So we’re here on the daily watching for topping patterns, we’re actually short the dollar index. So we have a 123 top pattern and structure. We also have a smaller head shoulders, I like the 123 also a triangle or pennant here at this level. See we crack through last week getting a bid back up through this area, we start to crash through these highs that will negate the trade. But we do have a favorable risk reward on this position, we’re looking for first targets at around 94 to 94 Quarter. Now, the implications for the dollar index has a huge impact on the future directory of not only equities, but also commodities. So if we start to see this perceived flight to quality asset pullback that would lead to a bid or a boost in equities as well as commodities. So pay very close attention that if we do start to get this big, anticipated pullback in the dollar index, we’d be looking for potentially higher prices in equities as well as commodity so we’re going to be looking for a lot of those markets that have been beaten down in the equity and commodity markets to get long on a weaker dollar. On the flip side, if we start to power through these highs, and the dollar index looks like it wants to roar higher. That would be a sign to be risk off and be flat or potentially short, broader market indices, individual names and commodity so we’re paying close attention to the direction of the dollar to see if this area here the 9650 does indeed hold and wants to fall back lower or if these weekly highs at 9690 are taken out to move to the next leg up at 9899.