Despite UUP spike, dollar index bent over backwards (down) again to help stocks rally; with euro bounce

The US dollar ETF, called UUP, did a weirdly enormous spike up today, although the dollar index ($USD) fell. Some are saying that was an anomaly related to whether the UUP will issue more shares, or maybe just a huge trade unwind. As for the underlying US dollar index - If you extend the channel trendlines I drew a while ago on my dollar and euro charts (below), you'd see that both moved ouside that channel the last several days. But with the pullback the past two days, both have done a kissback to the broken channel line. What now?

Frankly they can go either way, based purely on the break. A break like that can set up a final movement in the direction of the original trend that becomes a diagonal wedge. Or, the kissback can be a kiss "goodbye" and then the dollar will rise, the euro fall. Many are looking for the dollar to move up, while plenty others are betting it continues down. No wonder gold hit a new high yesterday! But I digress.

Even though the dollar index didn't tag the 74.75 $USD which was my next target, it did hit others' targets, and I won't stand in its way if it wants to rebound. Similarly, the euro may have finished its current wave, and be due for a drop even if that's just a corrective pullback. A trend is a trend ... until it isn't. Both currencies have created the conditions from which a trend reversal can occur and be confirmed. Now - we just have to see if a trigger day up buy signal (and trigger day down sell signal) arrives tomorrow or Monday.