DXY Poised On Verge Of Break Out To Upside
The DXY is about to break the 78.449 high last achieved on December 22: at 78.320 we are very close. Greece is helping. When that resistance is breached, look for Europe to start panicking and also all those who still have the dollar short trade on to start rushing through the exits.
Deflation-plagued Japan can not be too happy about the recent strength in the Yen. Alternatively, the question of when the ECB wakes up and follows Ben into the ZIRP rabbit hole, now that Greece is the catastrophic equivalent of California, starts becoming relevant once again. And if the ECB does lower rates, look for all hell to break out in FX land.
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