Breaks of the 100-day moving average across multiple charts
Well, you can basically count the EUR/USD and the dollar index (DXY) as one chart but still it isn’t a good sign. At the moment, dollar bears are looking poised to unseat the bulls from the driver’s seat as the greenback’s upside momentum since April appears to be breaking down.
If prices are able to hold at current levels until the end of the day, it would represent the first significant breaks of the 100-day MAs in the EUR/USD, GBP/USD, and DXY since April. And that will effectively break the bullish dollar bias in those charts that we have seen for the last five months or so.
It’s still a bit early to call this the demise of the dollar but the early signs here are not looking good and this could potentially be the start of a turning point in the dollar for the remainder of the year.
However, as mentioned earlier in the day, keep an eye out on US Treasury yields – which continues to move higher. 10-year yields are now trading at session highs on the day at 3.076% and if yields start to break out to the upside it will give a reason for dollar bulls to jump back in.