The US Dollar (USD) has made a strong 15 week run since mid-July. It appears to have made a top and is correcting now. Price won’t be bullish until it moves above the 1×1 descending Gann angle. But does look strong in this time frame.
The base formed since summer of 2007 also looks strong. Price is pulling back to the 1×1 ascending diagonal. Price could be forming a bullish flag but it is not a good idea to anticipate this move and trade before the move. Price could just as easily break down from here. But it is a place to watch and wait for the eventual move off this formation which will tell us a lot about where the USD is going.
Chart courtesy of Stockcharts.com
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To me the dollar appears to be finishing wave 4 down and preparing for final wave 5 up. Wave 1 started about July.