The Dollar Index penetrated its descending trendline, indicating the recent correction is over, but the latest red candle warns of uncertainty. Reversal below 95 would warn of another test of primary support at 93. A weaker Dollar would boost demand for gold and lift the US economy, enhancing the competitiveness of exporters and local manufacturers facing competition in domestic markets.
10-Year Treasury yields retreated below support at 2.25% as turmoil in Europe (Greece) and China reduce the prospect of rate rises. Expect support at 2.10% and the rising trendline. Breach of support is unlikely, but a Fed retreat on rate hikes would warn of serious upheaval in financial markets.