The above weekly chart of dollar index shows the consolidation breakout and heading towards the north direction to the levels of 102.20 followed by 108.80 and the fundamental shows that optimism over the strength of the US economy and expectations for a December rate hike by the Federal Reserve continued to boost demand for the greenback.
3 charts supporting the breakout in the dollar index are
1) EUR/USD Monthly Chart
EUR/USD was in the downtrend from distribution pattern in the form of descending triangle (Fig-X) and continuation channel (Fig-B) with prior trend down (Fig-A) and expected to reach the target C.
Indicator view RSI is heading towards the south with RSI swing failure with the trendline breakdown
2) GBP/USD Monthly Chart
As we can see, GBP/USD has formed a head and shoulder pattern in the form of reversal pattern and selling is intensified and may expect to touch the Target C Indicator view
RSI is making lower highs and lower lows as drawn trend lines and shown in the figure and below the MA.
3)USD/JPY Monthly Chart
As shown in the figure, support and resistance line with the green and red arrows whenever prices comes in the channel prices tend to go the resistance level (125.40) and now prices are heading to the north direction
Indicator view
Monthly RSI is now taking support as drawn trend line shown and it is above the MA.
Conclusion:
As these charts are favouring the breakout in the dollar index, we may expect the dollar index will go to the levels of 108.80 soon.