The trickle lower in the dollar comes as U.S. yields struggled to hold onto the new highs, with the benchmark 10 year treasury yield seen just above 1.72% having traded above 1.78% on Tuesday. However, this slip in yields is likely to be just a period of profit-taking as data continued to point to underlying strength in the U.S. economy.
The DXY market is showing a bear downturn and potential for a selling wave to 92.92 as well as potential to 92.73. A drop through 92.73 will foster continuation selloffs today. Any congestion under Tuesday’s range high will keep the market setup in a bear flag. Trade must post a close over 93.50 to reverse out of the current downturn.