News junkies continue to focus on Greece, followed closely by how the euro will react to a default.
Taking a step back from the Greece noise, let's look at the USD's price action over the past few months.
The US$ looks to have broken support and kissed the underside of old support as new resistance at (1), creating a third lower high. These lower highs could be the top of a bearish descending triangle pattern. (See Descending Pattern below)
Over night the US$ was strong for a while and the euro was weak, although a small reversal pattern may have taken place at (2).
From a 30,000-foot view, if the US$ is forming a bearish descending triangle pattern and support breaks at the 93 level, the measured move suggests the US$ declines to at least 87.
With all the uneasy news coming out of Europe and Greece, is it really possible that the US$ could start acting unhealthy and turn lower while the euro actually starts to revive?
These patterns are made from billions of free thinking people…stay tuned to see what they do, because what the US$ does at falling resistance could send a key message for how all of us should construct portfolios going forward.