USD firms at support
If the stock market led asset market mania is to continue, USD will likely have something to say about it, or at least something to say about what components of said asset markets will bull, bear, out or under-perform. The June 3 update showed DXY having slammed down to the support area around 104.10. From the update…
Today’s low is 104.12. No breakdown yet, and it is sitting on clear lateral support. Another point to be aware of is that breakdowns are not sure things. They can also whipsaw players down then up. But as of now it’s not looking good for USD. I am pretty much sitting on my hands until something solid happens (and maybe even after something solid happens).
Nothing solid yet. It’s a support hold, thus far. We are still in the mush of a grinding decision point. Fail the 104.10 area support and markets will likely party on (Garth). Hold here and take out the SMA 50 (105.08) and an early summer correction could unfold. That could be the “healthy” correction prior to a bull drive into the election that I am more than open to.
