Chart of the Day - Monday, August 23rd, 2021

Today’s Chart of the Day was shared by Mike Zaccardi (@MikeZaccardi). it's a daily candlestick chart of the US Dollar index over the past year. The Dollar raised some eyebrows last week as it broke out to a nine-month high. Dollar strength tends to be a headwind for risk assets. So, last week's breakout was a potential concern. However, the Dollar gave back a lot of last week's gains in today's session, and it's trading back below the March highs. As Mike points out, this appears to be a failed breakout, and you know what they say about failed breakouts..."from failed moves come fast moves in the opposite direction." If the Dollar continues lower, it would likely be positive for a lot of the things that have taken a beating this Summer like Emerging Markets, Metals, and even Crypto.