Dollar’s rally in early US session was triggered by 10 year yields which surged to highest since 2011 at 3.068. At the time of writing, TNX remains firm at 3.059. But USD is struggling to find follow through buying. 1.1822 in EURUSD, 1.3459 in GBPUSD cannot be firmly taken out to confirm fall resumption yet. Instead, there’s some money flow into Swiss Franc.
On the other hand, Gold’s fall has much more conviction. With 1300 handle taken out, next support could be found at medium term trend line at around 1285. This will be a key level to defend the “corrective” up trend from 1112.81. Break there will further affirm the case of trend reversal. And, rising yield, falling gold. It will be a matter of time, if not now, that Dollar buying will show more commitment.
