Above is the daily chart of US Dollar Index (.DXY). Starting from Jan 2011, the index has been falling continuously, along the descending triangle (formed by green and red lines).
In late March, there appeared to have a little break out of the triangle; however, the index slumped again and reached the green line again in April, implying that it was back into the triangle again.
We can see that the index breaks out once again. This time it faces another short-term resistance (in purple) and the level of 75.4, which is the previous low.
Once US dollar could successfully break out, it appears to have bottomed and turn into bullish trend. Then, the stock markets would face a hard-time.
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