The Day Ahead: PM Edition 2020-02-08

DX had been doing quite well but couldn’t stretch past 91.44. One way to count this is a developing leading diagonal up from the low at the start of the year that needs one more high.

I know I sound demented talking about a serious bounce in bonds but I’m sticking with it. Today the low was at a touch of the declining trend line that spans the lows of the last five months. Prices quickly recovered support at 166^22 and are working on recover 167^12. Also note the positive divergence on the cyclic adjusted RSI on the top of the the ch…