The Dollar Index is headed for a test of resistance at 84.00/84.50. Respect of the rising trendline indicates a healthy up-trend — as does the 13-week Twiggs Momentum trough above zero. Breakout above 84.50 offer a long-term target of the 2010 high at 89*.
* Target calculation: 84 + ( 84 – 79 ) = 89
Treasury yields are softening as the Fed talks down the prospect of ending QE, but the primary trend remains upward. Respect of support at 2.00% for 10-year Treasuries would indicate a healthy up-trend (for yields), while brief retracement that respects 2.30% would warn of sharply falling bond prices and further instability.
