With the US dollar sharp decline now on the verge of breaking critical support, as expected, even the dovish Fed governors now turn into hawks and trying to convince the market that they are still going to raise interest rate, which most now do not believe they will do so, the US dollar simply traded sideways on Friday. A pause in dollar selling was enough to stall major selling in the stock market as well, so the market simply traded sideways all day on Friday.
With central banks stock buying activities certain to continue in order to hold the stock market up for up coming US presidential election, and with all the major stock indices still sitting above their breakout level and above key moving averages on the daily chart, it would take a major negative news to cause a sustained selling. Until then, any selling should remain under control. 94 area is key support level on the US dollar index. A sharp and sustained break below 94 could trigger an avalanche of selling that could overwhelm central bank buying, and will cause massive havoc to the global financial market.
Inflection price level for NQ on Monday remains at 4805.
