Friday marked what could be the start of a significant shift in the market following the jobs report. The dollar index rallied sharply and appeared to have put in a double bottom. The index has found a significant level of support around 92.50, and should it rally beyond 94; it would likely confirm that double bottom pattern and set up a run to around 96. The RSI also hit very sold levels around 17.50 and is now beginning to show signs of a reversal of the trend.
If this is the case, it could market the unwind of the risk-on trade.
USD Index Daily Chart
Hi! I am a robot. I just upvoted you! I found similar content that readers might be interested in:
https://mottcapitalmanagement.com/9-monster-market-predictions-for-the-week-of-august-9-the-risk-off-trade/