Chart of the Day - Wednesday, April 10, 2024

🏆 Today’s Chart of the Day was shared by Aksel Kibar (@TechCharts).

• The US Dollar Index had its best day in over a year today, surging +1.04%. It blasted through resistance at $105, closing at its highest since November.

• Aksel points out that today's breakout marks the completion of a two-month Cup & Handle pattern. This bullish pattern targets last year's highs, around $107.

• $DXY has trended higher all year, while risk assets, including Stocks, Gold, and Bitcoin, have all made record highs. However, if the Dollar accelerates, it could begin to weigh on risk assets.

The takeaway: The US Dollar (DXY) firmly broke out to a year-to-date high today, and it's resolving higher out of a bullish continuation pattern. Renewed strength could be a headwind for risk assets in the coming weeks.