The US Dollar Index has been on a bull run since January 2021, we can see a consistent uptrend, making higher highs breaking above and beyond the $103 dollar mark, which it hasn’t been above since December of 2002.

Looking at the monthly timeframe for the US Dollar Index, we can see around January of 2021 was the beginning of the double bottom reversal pattern. Now if we take a look at the pattern that’s currently forming at the top of the highlighted zone, can we see the similarities?

The yellow highlighted zone between $108.7 to $109.8 was taken from a major resistance from September 2002, where the price significantly dropped from in the past. Which was the last time that the US Dollar was sitting at the current price.

If previously in the past the US Dollar was pushed down at this major resistance, there is a high probability that it could happen again. Pairing the major resistance with the double top pattern that’s forming, we could expect the end of an uptrend for the US Dollar.

On a daily timeframe, the US dollar has been moving sideways, consolidating for a total of 8 days.

Struggling to break above the previous high, this can be seen as buyers losing control of the markets, and sellers could be coming in. A Break below the consolidation zone could confirm the beginning of the downtrend.

This could be helpful when looking at pairs that have a strong negative correlation with the US Dollar Index.

However, if the price pushes above and continues to rally, we can see the price potentially head up to $120.