Dollar Breakout: Trouble Ahead for Stocks

While most uptrends have come under pressure in December, the rally in US Dollars has remained strong.

The US Dollar Index $DXY has been climbing in a near-vertical line since it bottomed at the lower bounds of its range three months ago.

Today, DXY is attempting to break out of a base as it trades at its highest level in over two years.

A decisive breakout in the dollar could shift the tide and put significant pressure on risk assets.

As long as the DXY holds above the critical 107.50 level, stock market bulls are on high alert.

Dollar headwinds are the last obstacle stocks want to face heading into the holidays.

Thanks for reading.

And be sure to download this week’s Currency Report!

All Star Charts team