DXY - Dollar gaining momentum
The dollar has continued to show strength since the beginning of the year. This is a 3-day chart and it is showing positive divergence on the MACD since January and we just got a crossover into positive territory. On top of that, it is squeezing to the upside. This could just be repricing in the huge loss it has had over the last year. I expect a continuation up to around 94.30 and then I think it sells off again. This will put pressure on the equity markets as it signals risk off, but I am not overly concerned about it. We may see the NDX outperform the other indices since it has already taken a big hit and the other indices have run hot.
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