Dollar Strength and Oil Price Drops Set Stage for Market Volatility

The Dollar index is expected to break through the 101-101.50 range, which could lead to the Euro falling towards 1.14 or even lower.

The USDJPY and EURJPY pairs are also showing bullish trends, while the EURINR may decline towards 109. Meanwhile, the Aussie is looking bullish towards 0.72/73, and the Pound is headed for 1.33/32.

In terms of commodities, Brent and WTI oil prices have fallen amid US-Iran diplomatic talks, with crucial support regions at $98-$96 and $90-$88 respectively.

The US Treasury and German Yields are both lower but may dip further to test their support levels before potentially rising back up. The 10Yr GoI yield has come down sharply but is poised above a key support level, which is expected to hold.