— Louis Sykes (@haumicharts) May 19, 2022
Today’s Chart of the Day was shared by Louis Sykes (@haumicharts). The Dollar Index broke through long-term resistance around $104 a couple of weeks ago, hitting its highest level in two decades. However, Louis points out that it’s beginning to look like a failed breakout. As we know, failed breakouts are often followed by sharp moves in the opposite direction, which in this case is lower. The Dollar’s relentless rise has put pressure on Stocks, and other risk assets this year. A potentially weaker Dollar could be the catalyst that the bulls need for a rebound rally in the coming weeks.