Independent Strategy

Tags: Technicals

Bit more currency volatility after the Easter break with the dollar starting strongly, moving to its recent highs in dollar index terms.  We're not quite at point of capitulation but if this move doesn't reverse it could finally deliver the long awaited bullish dollar break.

Currency's remain trapped in ranges, with no sign of any immediate break that could snap them out of these bounds.  The longer-term trends remain intact but these periods of consolidation can be lengthy before these primary drivers reassert themselves.  Overall it's still a strong dollar story.

Currencies have ranged for the past week, with dollar ceding a little ground.  But not enough to derail the overall dollar bull story.  Bond yields have tried to edge back but remain locked in longer-term downtrends which implies still lower yields.

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