With growing anticipation that the 1st rate increase from the Fed is nearing, the U.S. dollar index broke out of a multi-month consolidation.The Federal Reserve today hinted that a rate hike was "still on the table at its next meeting" in December.
Traders in response to the more positive tone from the Fed, pushed the dollar higher and out of the consolidation.
The expectation now is that the US$ will gradually advance and start another retest toward par.
Bottom line: The U.S. dollar index broke out of a consolidation that held it since March.
The probability is that the dollar will now advance toward the March high of $1.00 in the weeks to come.
It is important to note that a rising US$ makes commodities less attractive.