Tactical Retreat from USD, Might Spell DOOM & GLOOM [Short]
So how did US's inflation report fare on Thursday 12th of January and how will this take the
DXY
by the hand?
For now, t's still moving down but not as sharp as it's been climbing.
A YoY decrease of 0.6% in CPI and a YoY decrease of 0.3% in Core CPI.
However, if we look at the MoM data, it's barely moving down to the point that core inflation has even moved up!
Uh-Oh..
If we look at the easing conditions in US markets, and a sticky core inflation it might be a matter of time until the next report comes out fiery hot.
And the FED won't have any other choice than to go raising those rates again!
But until that time, we should grasp the opportunity and stay vigilent for an unwelcome upside surprise
- The
DXY
has been in a consolidating state, after falling below the daily 200 SMA.
DXY 1D
- Right after we've seen the Dollar breaking out of this consolidation and resuming its move to the downside.
- So far the MACD is showing us a new bearish momentum is about to start on the daily-chart, which could drive the dollar towards 101 and plunging it further to the multiyear resistance turned support at 98.
- The RSI could support a further move to the downside, although I would be much more satisfied if it would start the move from 45. This might create some room for the market-move without getting oversold too quickly.
DXY 4H
- While this is quite bearish for the dollar, I still want to be sure if this move will be sustained this week.
- What we're probably about to see at the beginning of the week, is the Dollar trying to recover some ground until it reaches 102,5/103 before getting dumped again.
- Resetting the indicators to a more comfortable state, from where it could proceed towards the next support.
DXY 1H
If this has been helpful at all, put some call options on that REP!
DXY
by the hand? For now, t's still moving down but not as sharp as it's been climbing.
A YoY decrease of 0.6% in CPI and a YoY decrease of 0.3% in Core CPI.
However, if we look at the MoM data, it's barely moving down to the point that core inflation has even moved up!
Uh-Oh..
If we look at the easing conditions in US markets, and a sticky core inflation it might be a matter of time until the next report comes out fiery hot.
And the FED won't have any other choice than to go raising those rates again!
But until that time, we should grasp the opportunity and stay vigilent for an unwelcome upside surprise
- The
DXY
has been in a consolidating state, after falling below the daily 200 SMA.
- Right after we've seen the Dollar breaking out of this consolidation and resuming its move to the downside.
- So far the MACD is showing us a new bearish momentum is about to start on the daily-chart, which could drive the dollar towards 101 and plunging it further to the multiyear resistance turned support at 98.
- The RSI could support a further move to the downside, although I would be much more satisfied if it would start the move from 45. This might create some room for the market-move without getting oversold too quickly.
- While this is quite bearish for the dollar, I still want to be sure if this move will be sustained this week.
- What we're probably about to see at the beginning of the week, is the Dollar trying to recover some ground until it reaches 102,5/103 before getting dumped again.
- Resetting the indicators to a more comfortable state, from where it could proceed towards the next support.
If this has been helpful at all, put some call options on that REP!