Since the start of the Covid-19 pandemic, the dollar index and US Covid cases have had a negative correlation. That negative correlation has weakened lately but still exists. There are of course reasons for that correlation such as slowing economy, money supply growth due to extreme stimulus packages both fiscal and monetary. The rising vaccination ratio however is trimming the correlation because of fewer lockdowns. But delta may change this trend to reverse, at least for some time. 7-day of new cases slope highest of all previous wave starts.
The dollar chart is also in line with this possibility. A possible double top may be forming near the 93.200 and even if it will not break, the price may take a step back to the middle level of the last uptrend or even to the start of the trend depending on the wave’s strength. If the previous tops break to the upside however this setup may become null.
