- The Dow looks set to gap-lower this morning as US Dollar strength continues. The weekend-gap that we looked at yesterday in the Dow has now been filled, and we’re now testing an area of support that held-up the lows throughout last week.
- Elsewhere – support has not been so friendly. The Euro is digging deeper into the zone that helped to hold the lows for the latter-portion of last year, and GBP/USD has been in hard-sell mode as another disappointing release of UK inflation numbers make the prospect of tighter policy from the BoE even more distant.
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Dollar Rallies Back to Resistance While US Equities Reverse Early-Week Breakout
The US Dollar is back to the 94.00 level on DXY, and this is the same area that had helped to turn-around prices shortly after this week’s open. Given the scope of the trend in USD over the past month, continuation of that bullish move comes as no small surprise, but what has been a bit more noticeable over the past 24 hours has been a re-emergence of sellers in US Stocks. US Equities opened the week with