Harmon: 3 Reasons To Buy The US Dollar

The fall ended at a higher low and the FOMC decision seems to have given it renewed strength. But will it go higher from here? The technicals are lining up to say yes. There are 3 things to focus on in this chart of the US Dollar Index.

First is the long descending triangle with support at 93.25. The Dollar Index broke above this triangle to start November and set up a target on that pattern break to 104. The second is from how that early December pullback formed. The reversal back higher this week creates an AB=CD pattern. And the target for that is 103.97. Coincidence? Finally the momentum indicators are flashing bullish. The RSI at the top held the bullish zone on the pullback and is rising again. The MACD at the bottom is about to cross up, a bullish signal.

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