DXY Looks Vulnerable Ahead of Draghi and ECB Thursday

Something very strange is going on (duh!). No, really.

Let's notice that The Dollar Index (DXY) is positioned ominously, pressing towards another confrontation with its flattening 200-Day EMA, now at 96.75-- heading into tomorrow's ECB Meeting when Draghi is expected to acknowledge the need for more stimulus and/or negative rates.

Shouldn't we think that the Dollar Index would exhibit a more buoyant set-up if the ECB continues to put pressure on rates while the Fed leaves another RATE HIKE on its table?

This is counter-intuitive.

Nonetheless, if DXY heads lower, breaks its 200-Day EMA, and presses towards a retest of the Feb 11 low at 95.24, the year-long topping formation will roll over into a much more serious and consequential set-up.