USD (DXY) is pulling back after last week’s FOMC event and is right at the 1st level of support at the SMA 200. If I was right in the June 22 update to project higher levels for USD, and if I was wrong in this morning’s update to open the possibilities of the reflation trades resuming sooner rather than later, then USD will likely hold in this area.
Here is the larger view showing the bounce to the 23% Fib. The technical setup is still intact for Uncle Buck and the rest is up to the market. Resumption of the inflation/reflation trades or risk management about them will be the options depending on what the buck does.