The US dollar index broke decisively through the 82.00 support level in early New York trade, sending the index to its lowest levels since the end of December. The renewed slide targets 80.63, the 50% retracement of the 71.55/89.70 rally which unfolded from July of last year to March of this year.
The one fly in the ointment is selling in EUR/USD (which makes up nearly 60% of the index and currencies which are closely correlated probably make up 80%) from options-players who are long EUR/USD via options.
The other cautionary note is that early NY moves tend to set tops and bottoms when they extend trends…I’m just sayin’…
