TOP 5 Trending Markets:
1. Gold: Yesterday's wide-ranging move suggests the yellow metal is going into a vertical-type exhaustion. Requires a sizeable pullback then a false-break or secondary high before even considering the termination of the uptrend.
2. AUD/USD: Testing the previous high's resistance range. Last correction was the largest in size since bottoming in August. Often a leading indicator of risk, could retest the previous correction base before taking out the .9790/.9840 region.
3. EUR/USD: Breached key Fib retrace, next major pivot is above 1.40. DXY is approaching key 78.6% retracement, which could provide temporary support.
4. USD/CHF: All-time lows reached today, oversold conditions could produce a false-break rebound.
5. Bond Yields: Bearish tone supported by central bank QE. 2-year yields still in falling wedge scenario, while long-end could be supported by possible diverging daily studies could hint of a false-break.
STRATEGY: Nearing short-term correction possibilities for all of the above, which should support the DXY. Look for a 1-4 day counter move to reinitiate US Dollar short positions.
