From the FXWW Chatroom: Post Fed minutes today I will re iterate the bearish dollar call I made on February 15th. Once again the dollar index (DXY) spent the morning above the 50 day ma only for it to sell off after the sentence “Downside risks associated with a possible further appreciation of the dollar or financial vulnerabilities in some foreign economies” hit the tapes. So now both the Trump administration and the Fed seemingly united in their preference for a lower dollar. At present levels (101.25) the risk reward clearly favors the downside with a stop through 102.00 and the target the 200 day ma coming in at just below 98. In USDCAD this translates to a short with a stop through 1.3230 and a target around 1.2850 (UBS FX Spot trader)
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