Short

DXY Down to Sub 90 points

Updated

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".

- - - -

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.

Comment

Comment

invst.ly/v-oab

Comment

invst.ly/v-s79

Comment

OmarNAMOUCHI

Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.