- $DXY Big Break of the 97.70
- Eyes on 99.0
After being capped by 97.70 for a few months the $DXY finally broker to the upside yesterday and it gives no sign of slowing down and finally, the UD Dollar’s price action makes sense. After months of good job numbers, drop in unemployment to a 47 year low and more than ok inflation data we see the strength this numbers support on the greenback.
The EUR/USD broker with the 1.1200 level and is turning even more bearish with this move above 97.70. The GBP dropped versus the USD breaking 1.2950 and it’s on its way to test February lows at 1.2770, all thanks to the same move. The implications of such a strong move on the US Dollar are massive and not only for currencies but also for equities and commodities.
The Dollar is king now and the next level I’m watching is the 99.00 which is also the 1.618 retracement of the A to B move, the last move to the downside. Calculated flag targets are below but also align with this zone. For the time being, we remain bullish and will look for some exhaustion at the 99.00 level.