Has the Dollar turned?

Has the Dollar turned? 

The Dollar Index has rebounded sharply from Tuesday's lows and looks like it may be about to embark on a period of strength. The market broke lower over the past couple of weeks while the RSI remained above 30 and above the March lows (a positive divergence).Not only this but price is now firmly back above those March lows as well. It is currently sitting just below 95 which is currently short term resistance. A break above here though and we may be in for a much bigger run up. 95.70 is the first target before 96.30 comes into play. Stops on longs should be placed below the March lows on a daily closing basis. 

Euro Yen flagging 

The Yen has been very strong over the past two weeks which produced a powerful move lower in Euro/Yen after the false break of the mid-March highsat the beginning of the month. More importantly now however we have a daily flag which for the moment has broken before bouncing back up. A daily close below these recent lows really should propel this pair a lot lower despite support just below at 122. On a clear break I would expect 119.80 to be tested initially with 118 the major target lowerdown. Stops can be placed above 124.40. 

Cable weekly still undecided 

Cable has been up and down more than *****'s draws over the past few weeks as it battles with a dovish Fed and BoE while also having Brexit worries to deal with. With the bullish call on the Dollar it might be hard for the Cable to bounce again from this area. The weekly candle doesn't fill me with great hope either. That said I think you need a close below 1.4050 before you can really put shorts on. We are currently still sitting at support and until that breaks pressing shorts downhere is risky. Back below 1.40 though and a retest of the March lows at 1.38 isthe least to be expected. I would only want to be long if we can break above the weekly trend line.