The USD leg looks reasonably firm now, particularly with EUR/USD now through notable 1.1664 support. A break of 1.16 could draw in momentum players and open up a new higher trading range for the US Dollar Index, according to economists at TD Securities.
Momentum players salivate
“The bias remains to the downside where 1.16 marks very critical support from a technical point of view. A break of this level will be rather pivotal for momentum players.”
“A break of 1.16 in EUR/USD would likely open up 94/96 as the next higher range for the DXY.”