The US Dollar Index failed once again at the key 10-day MA. This allowed the EUR/USD to advance above the 1.50 threshold and now possibly sets the stage for further weakness in the Greenback. The absence of weekly divergence and lack of substantial resistance leave room for the EUR/USD to advance towards the 1.52 region, unless risk aversion reappears as it did in the final hour of North American trade Wednesday. Either way, the 10-day MA has become the proverbial line in the sand for the DXY & EUR/USD. All market participants should keep a careful eye on these key moving averages to determine whether a pullback could materialize into a more meaningful correction.
