King Dollar Marches On

The US dollar has broken out, as we anticipated yesterday. We inched above highs established at 114.54. Although red triangles on the KRI are confirming resistance at these highs, we appear to have broken out from the bull wedge pattern discussed yesterday. If we are able to break through then our next target is a bit aggressive at 120.66. However we are likely to meet resistance at several levels before then. If we retrace, then we could go as low as 111.37, but this is unlikely as a range was established with a bottom at about 113, which we expect to hold once again.