The USD:EUR tracks the Mag 7, a fall in one means a fall in the other – BCA Research
Seeking Alpha News (Thu, 03-Apr 4:00 PM)
The U.S. dollar/Euro (USD:EUR) is tracking the rise and fall of the Magnificent Seven, according to BCA Research.
Dollar/Euro & Mag 7 (RCA Research)
Therefore, tactically, a relief rally in the Magnificent Seven stocks – (AAPL), (AMZN), (GOOG), (META), (MSFT), (NVDA), (TSLA) – will cause a relief rally in the U.S. dollar, which are down about 19% and 6% year-to-date, respectively, said Dhaval Joshi, chief strategist at BCA Research.
A relief rally in the dollar would also imply a tactical reversal in gold (GLD) – up 18% year-to-date – confirmed by gold’s 65-day price proximity, “reaching the point of collapse that has signaled previous tactical reversals,” he said.
Gold is vulnerable to a tactical reversal (RCA Research)
