Mike's Mid Day Minute is available to members on Monday, Wednesday & Friday evenings, with one article per week available to non-members. Members please login and see "Mike's Mid Day Minute" in the navigation menu towards the top of the page.

All Eyes on U.S. Dollar for Clues About Macro Landscape

The Dollar Index (DXY) has declined 3% since last Thursday, and in so doing, has sliced beneath its 13-month support line at 96.10, and has pressed below its 200-Day EMA (93.95) in route to a full-fledged test of 6-month support between 94.00 and 93.00.

A sustained breach of 93.15/00 in DXY will confirm the establishment of a major top in the U.S. Dollar, which will trigger an optimal, downside target in the vicinity of 87.00-86.00 in the hours/days ahead.

Should such a scenario unfold, I will be expecting buoyancy in the precious-metals sector, and very curious about the reaction of investors to U.S. Treasuries:

Will scared money flow into bonds amidst an acutely weak U.S. Dollar? Or, will U.S. rates actually back up within a weak dollar scenario?

  • Action-Oriented Trade Set-Ups in Stocks & ETFs
  • Macro Analysis of the Broader Markets
  • Detailed Technical Guidance for each Trading Idea
  • Live Interaction w/ Mike & Our Member Community
  • And Much, Much More!
Join Now! - Special Offer!
Veteran Wall Street analyst and financial author, Mike provides detailed and timely analysis and trade set-ups on a range of markets. Read more...

Have Mike's “Out Front” morning analysis delivered FREE to your email inbox twice weekly!