The US Dollar Index (DXY) consolidated while the treasury and commodity markets continued to trade violently. The greenback's recovery off the 20-day moving average spent most of the day locked in tight range between the 38.2% and 50% retracement levels. Future direction will now require the formation of a swing low above the 50% retracement or a swing high below the noted range. A bearish breakout will reopen the key Fibonacci retracement at 79.22, which has been tested twice so far. In the event of an upside breakout, the 61.8% retracement is targeted ahead of the 200-day moving average.
