USD Ascending Triangle BreakoutU.S. Dollar Currency IndexTVC:DXYFOREXcomThere's a reason to track formations and it's not because every one is going to fill in like the textbook shows that they could, and that reason is the possibility of asymmetry. Into last week's close USD bulls were still looking somewhat weak as the DXY basket finished the week on the bullish trendline connecting recent higher-lows. And as the week opened with a bit of panic the USD broke out in a very big way, rushing up to fresh 2026 highs. With hindsight it's easy to qualify *why* the move happened but perhaps more impactful was the backdrop that even allowed for that scenario. The USD went into deep oversold territory on the daily in late-January, and sellers took their shot after the pullback to Fibonacci resistance at the 97.94 level. But - they weren't able to stretch to a lower-low, and the higher-low from that led to another test of resistance at 97.94. That price held the highs for three of the past four weeks and that built a backdrop with which USD bulls could pounce, and the events over the weekend were merely the catalyst for that to happen. At this point, there's now an ideal spot for support potential at that prior resistance of 97.94 and for that to come into the picture, we're likely going to need to see a bounce/pullback in EUR/USD and there's a couple of key levels nearby there. But, what could also assist in that move is a deeper pullback in USD/JPY, and given the headlines, there could be motive for such as we've already heard Kazuo Ueda warn of possible rate hikes should oil prices remain a concern. It was the BoJ threat of rate hikes that produced the pullback in late-January and another theme of that nature could certainly show as the positioning on the pair remains heavy and one sided. - js