We saw strong dollar buying yesterday with EURUSD breaking through key support, what a difference a day makes with the dollar giving back almost 61.8 of its move from the February 19th lows.
DXY daily chart
So were to next for the dollar index and risk sentiment in general?
I look at todays move as dollar correction and a good opportunity to buy the dollar, we have broken now key resistance puts for the likes of EURUSD, GPBUSD, AUDUSD or USDCAD on the downside. With clear resistance points on these pairs and support for USDCAD I am happy to add to my current positions looking for another leg higher in the dollar, should we break and the trade not work out there are some more key support legs lower for the dollar index before a new leg lower in the dollar index can be called.
