The US Dollar Index benefitted on Thursday from renewed risk aversion. The commodity currencies suffered the most as the DXY managed to rebound off the 10-day MA. The EUR/USD rejected at its 10-day MA as well, hinting at a possible shift in trend. The next key technical event to watch will be whether the USD can clear the resistant 35-day exponential MA and if the EUR/USD can sustainably break below the 50-day MA (now at 1.4423). If these moving averages are breached, a broader correction should ensue. In the event of a reversal in risk appetite, clearing the 10-day MA (expected to be near 1.4630 at the time of the payrolls number) should reinvigorate dollar bears towards recent lows.
