The USD is down across the board with US yields while stocks are trading higher but today we are releasing the FOMC minutes so it is a delayed data from November 1st which means the release of the minutes today may remind us that 2 percent inflation target is still far away, so this could possibly trigger some DXY relief rally. That said, we may see some pullback that allows us to be short dollars from better levels. Looking at the Elliott wave structure, I surely wouldn’t be surprised to see the fourth wave here, if the support of the current hourly trend line is broken. US yields are also down five points.
Furthermore, I see the SP500 moving towards a strong resistance zone, where a pullback can also trigger a USD rally. Let’s not forget to mention some stock profit taking ahead of the Thanksgiving holiday.
grega
