DXY Down to Sub 90 points

Hello Traders ,

Sell setup on the DXY :

Macro Reasons :

Inflation is runing hot 5.4% yoy.

Negative real yield on US Treasuries: (-1.65%) on 5 years T-Note.

Taper base case for Goldman : is 45 % chance the FED will taper on November 2021, by $15bln per meeting speed of tapering , which is split $10bln in USTs and $5bln in MBS.

Fed will keep low rate for longer.

Covid Variants are spreading and forcing lockdown , in NewZeeland and Australia.

Technical Reasons :

DXY has broken the top of a " Expanding flat formation " making new high for 2021 and reaching 2020 level, with bearish divergence on "MACD".

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With this being said : long trade setup will play on the reflation currencies : NZD, CAD, AUD

Commodities like OIL : BRENT and WTI Crude are expected to gain momentum for upside.

註釋