The U.S. dollar has come under renewed selling pressure, which really commenced during the Asian session.
As covered yesterday, market sentiment for risk was very much restored, given the stabilization with Covid-19 spreading in Europe’s hotspots. The likes of; Spain, Italy and France, have seen a notable slowdown in rising cases and deaths.
The updated statistics initially provided a nice strong boost to European stocks, then the U.S. followed suit. Gold was rallying, given how bid stocks were, this is a typical institutional practice of hedging against all of the risk of backing stocks aggressively.
Looking back since the commence of 2020, the DXY has been on the rise, any dips have been bought. The fundamental support for the greenback is down to safe-haven flows, with the Covid-19 global fears.
It is still too early to suggest that this is going to be the end of Covid-19 spreading, however, markets are running with the solid developments for now.
DXY via the daily chart view has been flirting with the psychological 100 mark to the downside. It follows what so far looks to be bearish evening star candlesticks, which by the textbook is an incoming change in trend.
(DXY daily chart: For full technical analysis and trade ideas, please check out our membership)
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