Chart of the Day - Friday, November 20th, 2020

Today's Chart of the Day was shared by Frank Cappelleri of Instinet (@FrankCappelleri). It's a daily bar chart of the US Dollar Index ($DXY) over the past six months. Frank points out that the Dollar has been stuck in a range between 92 and 95 since July. It's trading below its 50, and 200-day moving averages, indicating the path of least resistance is lower. A weaker US Dollar is bullish for risk assets like Large-Caps, Emerging Markets, Commodities, and even Bitcoin. In a comment to The Chart Report, Frank said, "A lot of Dollar-sensitive areas of the market have already broken out ahead of a breakdown in the Dollar. So if we do see the Dollar resolve lower here, it could potentially fuel those breakouts even higher."