US dollar holds a thin higher low
“Here is the daily chart’s story. USD (DXY) needs to hold above the February low of 89.68 in order to keep any semblance of the 2021 uptrend in play.”
Well, Unc took it to heart and held serve before putting on a bounce today amid inflation signals in the economy, hysterics in the media, rising Treasury yields and inflation expectations at new highs for this inflation cycle.
It was thin support when noted yesterday and USD has thus far simply reverted to screw all the ‘Death of the Dollar’ cultists within a still bearish technical situation. So by that hair the 2021 uptrend lives, while the larger downtrend is still in force below the resistance areas surrounding the 50 and 200 day moving averages.
As I’ve parroted over and over, if you don’t think Uncle Buck can rally while it’s being debased simply look at the history of any decent stock market liquidation and you’ll see that knee-jerking global casino patrons up chucking asset positions will buy USD in a frenzy when they rush for liquidity. Screw the fundamentals.
That said, today’s hard bounce by the counter party to the plethora of global anti-USD trades has not turned it bullish technically and in my opinion, the main driver to turn it bullish would be a tanking stock market that starts snapping key support areas. That has not happened… yet, anyway.
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