DXY held the 50 day average and is bouncing from it this morning. The yellow box had identified a bounce pattern similar to the previous one from last summer. The first phase of this bounce did not quite make it to the targeted resistance zone but this one might after the hold of the SMA 50 on the pullback.
I’d look for 92.15 as a key area for the bounce to either fail or become concerning for the global macro reflation trades if it takes out that level.
Everybody’s partying after all, and they are doing it at the expense of the US dollar.
Gold, we note once again, is a non-party participant and one day that will be to gold’s benefit by having separated from this amalgamated anti-USD speculative frenzy.
