Technical Outlook:US Greenback Index (DXY) coming off development helpS&P 500 flip down was unusually
Technical Outlook:
- US Greenback Index (DXY) coming off development help
- S&P 500 flip down was unusually robust for a correction
The US Greenback Index (DXY) shot larger yesterday as risk-off gripped dangerous belongings amidst renewed uncertainty with the coronavirus and the financial outlook. The bounce is coming off a trend-line working larger since 2018, and if the momentum is any indication the bounce might rapidly morph right into a rally. Search for the 95.72 low to carry for extra upside in direction of the 200-day MA and better to develop. A break beneath the low and trend-line will put much more stress on the Greenback, with DXY 94.65 eyed as the subsequent degree of help.
Really helpful by Paul Robinson
Take a look at the Mid-Q1 USD Replace.
US Greenback Index (DXY) Day by day Chart (coming off development help)
DXY Chart by TradingView
The S&P 500 received crushed yesterday. It was the kind of flip after a rally that implies that there’s extra from the place that got here from. The SPX closed the day beneath the 200-day and can start as we speak buying and selling simply above it; watch how this tug-of-war performs out. The considering is we are going to see extra weak point within the week forward, with potential for a transfer to the Might 14 low within the playing cards within the not-too-distant future. If the market can handle to stabilize and switch larger rapidly, it’s doable it was a one-off occasion, however that doesn’t look very probably right now.
S&P 500 Day by day Chart (sharp flip probably means extra promoting)
S&P 500 Chart by TradingView
For all of the charts we checked out, take a look at the video above…
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—Written by Paul Robinson, Market Analyst
You’ll be able to observe Paul on Twitter at @PaulRobinsonFX