US Dollar Strong Finish to 2016

The US Dollar remains strong as we move to close the books on 2016.  The kickoff higher that began in October and continued through November, is now making new highs as we near the end of December.

The position of the US Dollar index is firmly bullish with supports established at 102.120 and at the high-volume area at 100.950 – 101.615 (see chart).  The trend will point higher and the position of the index will remain biased to the upside while above these levels.  Any pullback to test these levels of support should be viewed as a buying opportunity.

Eventually this strong rally will give way to a large degree rotation or a deeper pullback but while above these well-established levels of support, it is wise to not try to anticipate when such a thing will occur and simply go with the large degree trend higher.

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