Chart patterns suggest US dollar index set to plow ahead

The US dollar index has broken a chart pattern known as a "triangle" formation to the upside, suggesting further gains may lie ahead, according to analysts cited by Blomberg.

That comes as the ICE's US dollar index approached 12-year highs.

"The breakouts from these patterns, whether to the upside or downside, tend to be pretty explosive, and already we’re getting a glimpse of that," Katie Stockton, BTIG's chief market strategist, told the newswire.

On Tuesday, the aforementioned index hit its highest level since April of 2015 and may extend its advance towards the 102 mark, BTIG said.

This past weekend, Goldman Sachs's global macro research team reiterated their call for the euro/dollar to drop towards parity versus the Greenback.

Their prediction came amid increased speculation that the US Federal Reserve would hike rates at its 15-16 policy meeting in December on the heels of the stronger-than-expected US jobs report for October.

"A period of indecision for the dollar, from the March FOMC to recent ECB and Fed meetings, has ended."

"This week's employment data have made December lift-off all but certain, validating the expectation of our US economics team, but markets — still suffering the after-effects of 'The Interlude' — are hesitant to embrace dollar longs again," the broker said.

The euro/dollar is headed to "parity and beyond."

Goldman forecast the currency pair would slip to 1.05 before the ECB's last meeting of the year, fall to 1.0 by New Year's Eve and drift lower to 0.95 over the coming twelve months.