The dollar has found some resistance while backtesting the recent high. First task is to go below the smaller pink line, if it can reach the circle we can expect a turn due to confluence of support (Fib level plus trendline). Meantime we can expect risk assets to move higher in that time. We can expect the Johannesburg Top40 to move higher then pause as the dollar goes higher again but the green line should restrict the dollar's thrust and head it down again. By then one can look at harvesting profits avoiding calls of "to the moon".
Comment:
Th DXY has made a sharp move & closed above the resistance (green), it could go higher from here but would be interested in what it does on the orange resistance. The DXY is already stretched so it can be expected to pull back giving risk assets a chance to move albeit temporarily.
Comment:
The DXY has found strong support at the 200DMA, expecting price to trend upwards towards 110 level, if it gets rejected from there, there is a high probability of going below the 200DMA.
