The US Dollar Index $DXY lives and dies by the Euro.
The Eurozone and the US are two of the largest economic blocs in the world, and their currencies sit at the heart of global trade and capital flows.
It’s no surprise that the Euro makes up nearly 60% of the DXY — so when EUR/USD moves, it doesn’t just influence the Dollar Index, it drives it.
This year, the Euro has ripped higher in a near-vertical line, breaking out of a massive multi-year base.
Now price is coiling just above former resistance near 1.1240 — a key level that’s flipped into support.
This is a textbook bullish pennant pattern forming right above the breakout level, with strong momentum behind it.
If this pennant resolves higher, we’re looking at the completion of a massive base in EUR/USD and a structural shift that likely leads to further dollar weakness.
If that happens and we get a breakdown in DXY, it would fuel global rotation and the risk-on trade in international equities, commodities, and other assets abroad.
Let's wait and see. But so far, the burden is on the dollar to prove otherwise.
Strazza’s got a fresh batch of Breakout Multiplier setups lined up — and the winners keep stacking. Just this morning, we took profits in $OSCR at nearly 4x — the contracts are up over 330% in a week.
He’s going live tomorrow at 1PM ET to walk you through the next ones on deck.
