USD, daily
USD, weekly
USD, monthly, 20yr, historic
Summary
Today's USD gain of around 0.8% was certainly nothing too significant, but it has helped to solidify what is possibly a multi-month floor in the 79/80 zone.
First upside target is 81, which would be important, since it would negate what is a very clear six week bear flag.
With a few daily closes over 81, the door would open to begin a challenge of the July peak of 84.10. Where it gets exciting is if we get a monthly close in the mid 84s or higher. A move to 87.50, even the spring 2009 peak of 89.11 would be possible.
Strong $ = Lower stocks, lower..everything
It is usually the case that if the $ is higher..everything priced in $ terms..falls. Certainly, this is not always the case, but generally speaking, it absolutely is!
If we have indeed seen the low in the weekly cycle, then a move to test 81 and then 84 seems very likely. It would highly infer that the doomer targets - as suggested by the monthly index charts, of sp'1200, is still a valid possibility.
*Due late Saturday, an update on those important monthly index cycles.
Have a restful weekend, and goodnight from London