The USD has fallen away and the bull run that saw us hit new highs is all but over.

Broad USD selling was the theme of the day and that was topped off by a tech sell-off on Wall Street. US-China trade tensions continue to weigh on markets and especially commodity currencies and that is one of the reasons for the selling.

We also heard from Ray Dalio, who came out and suggested that the USD is at risk of losing its status as the world’s reserve currency. He likened conditions to the 1930’s, where there were high levels of debt, where causing a real risk of USD selling in the years ahead.

The era of low rates, acquisitions and high debt can’t last forever in his opinion.

The USD Outlook

The DXY is now back at the resistance level turned support at 96.20. We’ve seen the 96.00-20 level as an important one over the course of the year and that appears to still be the case.

Given how big it has been, I just don’t think we are going to crack it to the downside.

Price moves in waves and needs to time to consolidate. Especially as there is no major driver of the sell-off, just yet. It’s really been sentiment and some uncertainty.