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The DXY extended its recovery off earlier....>

DOLLAR
DOLLAR: The DXY extended its recovery off earlier traded lows back through 96
(95.98 - 100-dma), before topping out ahead of 96.35. Near-term resistance is
seen from the Dec 31 high & 50% retracement level of 97.69-65.64 at 96.51/67.
Gold consolidates recent gains settling toward the upper end of its
$1278.82-1288.83 daily range. The yellow metal comfortably holds above channel
top resistance as highlighted in our analysis emails (Golden Times - Dec 10 &
Gold Bullish Breakout - Dec 21), with bulls targeting a close above the 61.8%
fibo of 2018 range at $1287.55, a break opens a run at the psychological $1300
level. We also highlighted the bearish break in US 10 yields on the recent break
of up trendline support around the 2.80 level (See US 10-Year Yields
Accelerating Trend - Dec 18 & US 10-Year Yield Bearish Break - Dec 20). The
downtrend has extended through Europe to 2.6451, its lowest levels since
January. Next support is seen at 2.6369 from the 50% retracement of
2.0144-3.2594, ahead of the Jan 24 low at 2.6076. 

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