Dollar index surged sharply overnight, thanks to the selloff in EUR/USD. The case of medium term reversal continued to build up after breaking of the trend line resistance as well as 91.01 medium term support turned resistance. Focus is now on 100% projection of 88.25 to 90.93 from 89.22 at 91.90. Decisive break there will add to the case that rise from 88.25 is an impulsive move. And thus, affirm the case of medium term trend reversal. However, rejection from 91.90 could make the rise corrective. For, we’re favoring the former case.
There are a couple of events that could help unveil the development including today’s Q1 GDP, next week’s ISMs and NFP, and certainly treasury yields too.
