Friday, April 17, 2015

CCY & Index Corner: DXY EUR GBP DOW

UPDATEQuestioning a Market Squeeze Part 2
Dow’s recovery above 18000; with a registered high @18288.63 dated the 2nd of March serves as the initial price cap and would allow Dow bulls the need to retest this trend. But a word of caution, a failed new high would drive profit-taking and a much wider decline can occur as this is also part of the market squeeze described herein. 
The overlying difficulty would not be made without a valid support of volumes for the US Dollar and the DOW would be a negative signal especially with fundamental uncertain surrounding the markets. On the contrary, the DXY has now gone beyond its initial support @98.10/40 which signaled a bearish momentum build-up in the near term. 

       CCY & Index Corner: DXY EUR GBP DOW

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