The US Dollar Index has benefitted from a loss of trendline support with both spot Gold and Crude Oil. Friday's rejection at the 20-day MA highlighted a failure at key psychological levels for the DXY (80) & EUR/USD (1.40) and has triggered a deeper pullback in risk appetite. Further weakness in equities and interest rates should help buoy the Greenback towards it's 35-day exponential moving average in the mid 81 region and allow the EUR/USD to retest the key 1.38 pivot, then possibly the 50-day MA further out. If the current move stalls, the 20-day MA becomes the proverbial line in the sand (now located at 80 & 1.40).
[STRATEGY] BUY USD's (SELL EUR/USD)
