Dollar Index (DXY) has bounced of from a considerable strong Support Level at 109. 109-107-104 are major key levels of Supports for the current DXY uptrend In case DXY loses those areas of supports, it will be in 'trouble' for the short term, while Equities, Commodities and Forex Markets will be experiencing huge rallies, taking advantage of a weakening Dollar.
Today is the Consumer Price Index number release. Consensus sits at 8% Inflation rate, while the previous month's number is at 8.2%. Many are forecasting for a 8.1% CPI number coming out. While in the world of speculation nothing is for certain, it is best for traders to wait over CPI's release taking the risk off and trading cautiously . I would not suggest for any one to trade the news and it's volatility, but if you do so, please take measures on any occurring scenarios over CPI's number release.
Very important day for everyone who is involved on Financial Markets. Very important day for Macro-Economics Data and overall Inflation around the World.
TRADE SAFE Note that this is not Financial Advice . Please do your own research or consult your Financial Advisor before partaking on any trading activities based soly on this idea
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DXY breaking down the bullish flag pattern. Next look for support at 200EMA on the Daily TF (105.5)