Earlier this year, the USD broke its downtrend to the upside which was confirmed when it closed at a new six month high on a daily basis. As has been the case since the beginning of the 2000s , periods of dollar strength have tended to coincide with weakness and volatility in risk-assets along with rising credit spreads. Thus far, 2018 has followed this pattern albeit much more violently in emerging markets. Given the above, the purpose of this post is to highlight critical support and resistance areas in specific currency pairs that have exhibited clear risk-on and risk-off behaviors as a way to understand whether or not this phase of dollar strength is likely to continue or dissipate. To be clear, the USD is still very much in an uptrend within a multi-year sideways consolidation. Risks remain elevated until the greenback breaks down. As the chart shows, UUP- US Dollar Index Bullish Fund has rallied since the end of...