Continued risk aversion has benefited the greenback, triggering a 2-month high for the DXY (US Dollar Index). The October/November double bottom measured move has been exceeded to suggest a possible extension to the 82 region. This key level coincides with the 200-day moving average, the 78.6% retracement and an equality target. Meanwhile, only a move below 79.461 (the November 16th swing high) would alter the short-term bullish wave count.
The EUR/USD is at a key inflection point. A sustained loss of the key 50% retracement level at 1.3075 would shift the medium-term outlook much lower. While former trendline support near the 1.33 handle continues to cap, a move towards the equality target at 1.2940 is favored.
The Cable's (GBP/USD) intra-day bearish rejection at 1.5652 (the October low) has maintained the immediate bearish structure. The 200-day moving average is next targeted while price-action remains capped by the key 1.5652 pivot.
