US dollar recovery begins to fade below $95.10
The US Dollar Basket has begun to consolidate below the $95.10 resistance level, following a strong recovery late last week. As mentioned, this level is crucial to determining whether we are going to see the dollar index push higher or roll over and thus the resolution of this sideways price action will have longer term implications.
The selloff we are currently seeing points towards a move back to the lower end of this current $94.74-$95.10 range. However, given that we are no longer creating new highs and have broken below the $94.86 level I was watching yesterday, I believe it better to either play the range or else await a bullish break and close above $95.10, or a bearish break and close below $94.74.