E$ caught between tectonic plates again...

More signals are converging to affirm a USD resurgence, which concomitantly would also mean an end to the commodity cycle (AUD, XAU, etc....). In a situation as such, euro benefits from the stronger EURXXX but on a relative basis will still be weaker than the greenback. Being caught in between 2 tectonic plates, it will become trickier. My concern is the divergence between the currency market from the equity market. In 1987, the US treasury bonds and the equity market diverged for around 7/8 months before the equity market plummeted. Are we in the making of the same? If so, then there should a big correction in the equity market this year, probably in the Q3.
Back to the E$.... with the weak close last week at 1.2990, we are now trading below the DMA21, 50 and 200, which are bearish signals. Strong resistance stands at 1.2995/3010 and pivot at 1.3060/70. First support level is the 61.8% target (see chart) which the market had already bounced away on first test with the next stronger one at 1.2910/890.

CFTC COT report - Speculative accounts (as per May 7):
Net euro short -33,533 vs 30,149
Net short jpy   -78,560 vs -71,127

Europe order book:
Stop loss: 1.2845 and 1.3055
Limit: 1.2860/50, 1.2935 and 1.3040/50

Primary trend: Bullish
Intermediate trend: Bullish (unless 1.27447 breached)
Minor trend: Bearish (refrain from getting too bearish nearer 1.2900)

Technically, longer intraday indicators are in o/s zone. Shorter intraday momentum indicator is showing range consolidation but longer intraday momentum continues to point lower. I expect a trading range between 1.2890/3010 to 1.2990/3010. Overall technical signals favours selling E$ on rally.

E$ Daily chart - 61.8% corrected