Dollar bounces from key support
Seeing some bounce from the Dollar Index is hardly a surprise from a technical perspective. Just look at the heaviness of the support on the weekly chart would tell you a small bounce would be in order in pretty much any market. So, some USD 'strength' on the rising US10 Y yields is hardly a surprise. An obvious cap to rising yields is seen at 1.25%. And yields at that rate will likely find some buyers keen to hedge in some gains against an equity fall.
With all the talk of the 'crowded USD trade' some profit taking makes sense at the 89.00 level on the Dollar Index. Seeing a bounce here is expected. I was short the Dollar index last year as the Dollar tends to be very weak from a seasonal perspective. Check out the stats here:
The obvious target was when price fell into the weekly support level. So, for me any bounce here in the USD is a natural retracement. Next major near term resistance marked on the chart with major trend line above at 93.00 & 95.00 (marked). Expect sellers as/if price retraces higher.