The US Dollar Index (DXY) broke out of consolidation, collapsing through triangular support. Price-action was decisively bearish, wiping out nearly all of last week's gains. The subsequent retreat probed the 38.2% retracement at 79.20 for third time. A clean loss of this key Fibonacci level exposes 78.52, the 50% retracement. Meanwhile, only a move back above the formerly supportive 20-day moving average alters the bearish outlook. The UUP (Proshares Dollar Index ETF) failed to clear key resistance to suggest a re-test of critical support at 22.
The EUR/USD reversed the recent weak downmove by breaking out of a short-term consolidation triangle. The rebound retraced nearly the entire move off the non-farm payrolls high. A higher low is now sought by the 20-day moving average for an extension towards 1.3462/1.3614 (the 38.2% & 50% retracement levels).
