US Dollar index: daily, weekly and monthly
This morning the foil to the global reflation trades and the speculative environment in general, USD (DXY), is cracking support and the SMA 50. There is more support at 90.82. Importantly, a series of higher highs and lows (AKA uptrend) is still in place for 2021, but the greater trend (SMA 200) is down.
The weekly view shows initial support more clearly. It also shows a sneaky RSI looking like it’s on a normal pullback to test its EMA 20. Also, there is the lower high that Uncle Buck made during 2020’s fear fest and rush to liquidity by casino patrons.
USD’s big picture lets us know that should the dominant downtrend resume and USD lose 90.82 the inflation/reflation trades could go a long way before strong long-term support is reached in the 83s.
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