June 27, 2022 14:55 GMT
- Net long specs on the US Dollar increased in the week ended June 21, up 14.1K to a total of 146.5K contracts.
- Overall, the ‘Short Dollar Trade’ remains moderately crowded despite the US Dollar trading close to a 20Y high.
- Risk off sentiment amid elevated geopolitical uncertainty combined with the ‘hawkish’ Fed have been the main drivers of the USD this quarter.
- The DXY index found resistance slightly below the 106 level in mid-June before consolidating lower in the past two weeks, currently trading below the 104 level.
- Momentum on the greenback remains bullish; ST support to watch on the downside stands at 103.12, which corresponds to the 50DMA (where the Dollar found support several times in end of May / early June).
- On the topside, first resistance stands at 104.94, followed by 105.79.