From the desk of Steven Strazza @Sstrazza and Ian Culley @IanCulley
Copper is challenging the lower bounds of its range.
The AUD/JPY is attempting to reclaim former support.
And the S&P 500 is digging in at the AVWAP from its COVID lows.
These are some of the most important charts and levels in the market right now.
But there’s one chart that tops them all…
In our view, the US Dollar Index $DXY is the key to this market.
It’s currently struggling to resolve higher from a multi-year base after reaching its highest level since 2002.
The breakout could stick and lead to a sustained uptrend. Or, it might fail. Either way, the outcome will have wide-ranging impacts on risk assets.