Dollar index finally broke the medium falling trend line resistance after yesterday’s solid rally. And focus is now on 91.01 support turned resistance. Firm break there will then be another sign of medium term reversal.
That is, the down trend from 103.82 has completed at 88.25, after hitting 50% retracement of 72.69 to 103.82, on bullish convergence condition in weekly MACD. Next hurdle will be 55 week EMA (now at 92.93). But we’d expect the rally to extend to 38.2% retracement of 103.82 to 88.25 at 94.19 at least. Ideally, is should be accompanied by a solid break of 3% in 10 year yield.
