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US Dollar Index break provides clarity to FX market
The break higher in the Dollar Index I expected on Wednesday came to fruition, and with it we have seen a reversal for many of the major US dollar-denominated pairs.
Overnight weakness has brought a reprieve across those markets, yet I expect this to be short-lived and the dollar to drive higher, moving those other pairs with it. The $97.44 level represents a support level that I would expect the price to hold above, and given the indecision shown in the current candle, that dollar resurgence could come into play sooner rather than later. Bear this in mind for other currencies you are watching against the dollar. The next leg is likely to take us towards $98.43.