Short relief rally may happen but continued selloff for DXY
The market reacted to Biden's infrastructure bill which will unleash another wave of dollar liquidity into the markets favouring risk on assets over safe havens. We should see the dollar continue its selloff even if the price is due for a short term relief rally.
BULL CASE
If the bulls find some momentum this week while the bears are sleeping, we should see price rally to no more than 92.4 and then find another final leg down.
BEAR
If the bears find conviction, the next area of support that we're looking at is between 91.3 to 91.5
BULL CASE
If the bulls find some momentum this week while the bears are sleeping, we should see price rally to no more than 92.4 and then find another final leg down.
BEAR
If the bears find conviction, the next area of support that we're looking at is between 91.3 to 91.5