The Dollar-Index (DXY) touched an important support zone at the 111 treshold this morning. Inline with that the currency pairs EURUSD and GBPUSD have reached their interim upside targets should the Dollar correction be over here. Stocks have a strong morning either. This reflects the recent negative correlation between risk assets and the Dollar.
Should equities continue to rally, the Dollar is likely to remain under pressure. Long-term rising equity markets -- stocks still have a bit of room (1 to 2 percent) before the bearish picture has to be called into question -- are not my preferred scenario, however. But that doesn’t automatically mean that the Dollar has to rise. Correlations are subject to change at any time.
DXY -- 111.19
R 113.00/113.25
S 111.00/110.75
S 110.25
EURUSD -- 0.9890
R 1.0001 (50 ema & descending red trend line)
R 0.9952 (former support)
R 0.9889 (mid Bollinger band)
S 0.9753/35 (recent lows)
S 0.9596 (lower Bollinger band)
S 0.9536 (low of 28sep)
GBPUSD -- 1.1374
R 1.1571 (50 ema)
R 1.1411 (covid low)
S 1.1290 (mid Bollinger band)
S 1.1025/00 (recent low and big figure)
USDJPY -- 144.66
R 145.90 (pre intervention high)
R 144.99 (pivot point)
S 143.77 (mid Bollinger band)
S 142.77 ish (ascending green trend line)
Good luck,
Sebbo