$DXY Houston, …. pic.twitter.com/7pTeYa5J5t
— brian.joyce.nasdaq (@Nasdaqbjoyce) February 6, 2023
Today’s Chart of the Day was shared by Brian Joyce (@Nasdaqbjoyce). The US Dollar index kicked off the week on a strong note after hitting a nine-month low on Thursday. It’s back above that crucial $103 level, which increases the likelihood of a failed breakdown. As we know, failed breakdowns often lead to sharp moves higher. The index remains below a flattening 40-week moving average, but it’s ripe for some mean reversion considering it just had its worst quarter in more than a decade. Dollar strength is one of the biggest potential threats to the recent rally in Stocks and other risk assets. Expect further pressure on Stocks, Gold, and Crypto if the Dollar continues to rebound in the near term.