The DXY edged higher overnight, but topped....>

FOREX: The DXY edged higher overnight, but topped out around 89.40, just shy of

Monday's best levels.

- The USD lodged 20 pip gains against the EUR, GBP & JPY, although the AUD

outperformed as the AUDNZD cross got some traction above 1.0750 late on in the

session.

- The main risk events for the dollar this week will be the deluge of Fedspeak

and US debt issuance crammed into the next 3 sessions.

- From a technical perspective follow through was lacking on 2018 & 3+ year DXY

lows Friday with bulls taking comfort in the minor recovery that now pressures

the 55-DMA. Bulls now need a close above the 55-DMA to ease bearish pressure and

above 91.751 to shift initial focus to 92.640 and overall focus to

94.219-95.149. While the 55-DMA caps bears remain focused on 87.202-627 where

the weekly bear channel base and Dec 2014 monthly low are situated.