Update on Currencies: Dec 2, 2020

Back in March, when currencies were gyrating wildly, DXY shot nearly 10% higher in a little over a week [see: Currencies to the Rescue] to rescue stocks – which sorely needed a rescue at the time. But, it became very overbought. Our downside target of 94.20 remained in place.

In July, when DXY reached the target and plunged through the channel bottom there, we started looking at 91.358 as the next most important level of support.

The 91.358 target was even more important tha 94.20 for a number of reasons. Now that we’ve reached it, what can we expect for the dollar and other major currencies?And, what does it mean for bonds, gold and equities?