US dollar index (DXY) held the SMA 200 and broke upward from a small bull flag
Thus far, daily USD is on the plan that sees it exceeding the current 23% Fib retrace and targeting the 38% Fib (94+), which coincides with lateral resistance. Complicating matters, if that comes about it would create a higher high to the March high to go with May’s higher low and establish a firmer 2021 uptrend.
If this (weekly chart) double bottom plays out in USD the summer’s inflationary “cool down” could morph to something more than the blip to reset sentiment I, for one, had been expecting.
USD has been the anti-market to a world full of speculations set free by the aftermath of the Coronavirus and the Fed’s response to it. Hence, said reflated world has an interest in not wanting to see Unc get unruly.
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