The U.S. Dollar Index finished the week lower after failing to confirm last week’s potentially bullish closing price reversal bottom.

Clearly, both the daily and weekly chart patterns indicate this market can accelerate to the upside if the daily swing top at 78.61 is taken out to the upside. This move is likely to trigger a short-term rally to a 50% retracement level at 79.58.

The Australian Dollar and the Japanese Yen are likely to be the main focus next week as both are expected to be big movers if the global equity markets expand to the upside as expected.

Money continued to flow out of T-Bonds and Gold which may be an indication that investors are gearing up for a stock market rally next week.

The September E-mini S&P 500 closed higher after a short-covering rally late in the session. For the week the market finished sharply lower.

The U.S. Dollar finished the week higher despite volatile trading action in the Euro. The Greenback closed decisively higher against the Euro, Swiss Franc and Japanese Yen while ending up lower against the New Zealand Dollar. The Dollar ended up almost flat versus the British Pound, Australian Dollar and Canadian Dollar.