Look like exists a cycle between DXY index and Sovereign debt in emerging markets. I expect a price reaction in the main level of the ratio. Historically, price reactions in the main level corresponds with bottom and the begining of a new bull run in the NASDAQ100. This is supported with the Bearish Price Action formed in the DXY and other currencies like NZDCAD and EURUSD.
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I expected the PCY/DXY ratio respected the long term support but it continued fall to COVID19 levels. The likely reason is inflation. High inflation level makes unatractive the Risk-on assets.