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$DXY | Dollar Index Setting up for higher than expected CPI

Short
U.S. Dollar Index (TVC:DXY)  
optionsswing  
TVC:DXY   U.S. Dollar Index
Trend Analysis DXY GLD Oil nasdaq
7
0
trendanalysis dxy gld oil nasdaq


-With CPI numbers numbers tomorrow, the market is expecting 0.3% positive change.

-CPI is the Consumer Price Index which measures the changes in the price of goods and services. It is a key way of measuring purchase trends and inflation.


- A higher than expected reading is typically taken as bullish for the USD white a lower than expected is bearish.


-Given the current Technical setup on the DXY, the market is expecting a lower than expected CPI which would be bearish for the dollar but bullish for equities and commodities/ especially precious metals. A bearish Head and Shoulders has formed and levels currently floating above the neckline; we have the MacD crossing over bearish and until that gets repaired, the DXY will most likely go lower. A measured move from this technical breakdown reflects a breakdown from 90 will provide a short opportunity to 87.



-Daniel Betancourt, OptionsSwing Analyst
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