It’s covering old ground, but I am getting geeked out on the USD (DXY) chart. This morning it has come within hailing distance of the 92.15 resistance target. Recall that we are also allowing for a bump up to the down trending daily SMA 200.
The bounce is at least two things…
- Counter-trend within a downtrend
If it is to remain in a downtrend, failing at, around or below the SMA 200, this is a buying opportunity for the stuff that benefits from a weak USD, which is most global asset markets and commodities. The inflation trades ran too hot and this week they are getting cooled down.