The Dollar-Index printed a new high of the year today with several Dollar Crosses on yearly highs respective lows:
DXY Spot 96.756 (h)
EURUSD 1.1203 (l)
USDJPY 115.24 (h)
USDCHF 0.9359 (h)
..at time of writing.
The mid-term target of 97.80 is just 1.08% off from current spot and charts start to look stretched. Nevertheless the Dollar has a run and it is very risky to short at these levels. With respect to rising 10yr Treasury Yield (1.648%) and Lagarde keeping her accommodative stance the pricing is reasonable for EURUSD. Despite this the Euro sell off could find an end above the 1.1174/68 support zone.
Yesterday I already mentioned to watch risk sentiment carefully. Therefore I like to advise again that JPY and CHF are so called safe-haven currencies. If things turn red it is not a matter of course that Dollar keeps outperfoming the swiss Franc and the japanese Yen. In that sense you can think about looking for shorts in USDCHF (has space up to 0.9473) and USDJPY (should not run above 116) with tight stops.
Good luck,
Sebbo