Dollar bulls might face risks from further weakness in commodities and equities

Dollar bulls could get hurt from large retreat in Dollar id any major risk aversion arises from equity and commodity selloffs. After Friday's block buster jobs report, performance of the Dollar has been quite lacklustre this week, lacking follow-up.

Euro/USD has been hovering around 1.07 area, for almost the whole week, even dovish comments from ECB president Mario Draghi, failed to push the pair lower.

Pound on the other hand is almost 1% up against Dollar, this week so far, in spite of not so good jobs report, especially on the wage front.

At this point, conviction over rate hike from US Federal Reserve might suffer a setback, financial market suffer turmoil similar like August.

Commodity prices are already back towards August low area.

FXCM Dollar index is currently trading at 12150, key support is at 12000 and 11800.