Judgment day for the dollar is near

Today is a day off in the US, which means that the market will be thin enough to provoke a strong movement. Although a more likely candidate for the "judgment day" is, of course, Friday. And the explosion of volatility seems almost inevitable. The reason is that two very important fundamental events occur on this day.

We are talking about statistics on the labor market in the US and the publication of the key indicator - NFP, in addition, it is on Friday July 6 tariffs on goods from China by the US amounting to $ 34 billion come into effect. That is, the trade war from words goes to its active phase. China's economy has recently experienced serious problems even without it (the number of defaults on corporate bonds in China is overshooting, which is an extremely unpleasant signal for China and the global economy as a whole). As the result, supporters of the judgment day intensified and predict another large-scale crisis in the world.

Considering that Trump personally and the USA initiated and organized all this "mess", we believe that the dollar walks literally on the edge. And Friday is just perfect day for starting its full-scale sales.
If you look at the graph of the Dollar Index, you can see its inability to overcome the key resistance 95 and see the signs of a nascent correction: consolidation at the top, the formation of reversal graphical patterns, candle signals, trend indicators go into a neutral negative state (see KenJi and TDI indications) etc.

So, we believe that the chances of a dollar's growth are small, but the probability of correction is high. Therefore, we recommend selling the dollar on all fronts. The minimum target for correction for the Dollar Index is 93.30. But very likely it descents to area 90 in the nearest future.