Something Very Strange Is Happening.
The US Dollar Index is positioned ominously, pressing toward another confrontation with its flattening 200-Day EMA -- now at 96.75 -- and heading into Thursday's ECB Meeting when Draghi is expected to acknowledge the need for more stimulus and/or negative rates.
You'd think that the dollar would exhibit a more buoyant set-up as the ECB continues to put pressure on rates while the Fed leaves another rate hike on the table.
But that would be counterintuitive.
Nonetheless, if DX heads lower, breaks its 200-Day EMA and presses toward a retest of the Feb. 11 low at 95.24, the year-long topping formation will roll over into a much more serious and consequential set-up.
