The US dollar turned around yesterday and fell sharply as stocks turned into a risk-off mode, probably due to recession risk, which was warned by some BoE members yesterday after they hiked by 50bp.
However, ECB was much more hawkish, so EUR/USD did not fall that much, but still, it's looking like a top now after five waves up with a spike to 1.0720/40 area.
Below we have USD Index, which is trying to stabilize after the wave three sell-off and divergence on the MACD. A broken red trendline and red weekly close on US stocks could cause some recovery in USD, possibly back to 107.
