The fact the reversal has come on three large jumps rather than a series of steps looks more like the short-covering you see in tradable instruments. That said, after some to-ing and fro-ing we do expect the dollar to trade back above 110 on the DXY and quite possibly above the last cycle high—114.75-ish.
DXY (cash) 103.654 last, up 0.662.
Did the dollar story change this week?
DXY closing "well" above the 21 day moving average is a start. Next big level is at the 50 day (103.75).
Source: Refinitiv
Mighty euro and the wedge
Euro closed below the 21 day moving average. Close it a little lower and this will break a huge rising wedge. First support around the 1.07 area, right where the 50 day comes in.
Source: Refinitiv
Euro "surprising"
Citi economic surprises, Europe vs US, has reversed sharply lower. Everybody is all in on the European long story, but previous reversals in this spread has led to the dollar making a strong comeback....
....MUCH MORE
A couple correlations we are keeping an eye on, dollar/copper and dollar/emerging-market equities.
