DXY Needs Consolidation To Maintain Uptrend
Data released on Wednesday showed a larger-than-expected monthly increase in the US PPI, inflation pressures are subsiding but they warn there remains significant ground to cover in returning inflation to normal levels.
If bulls push harder and the index surpasses 114.00, then the next target of note should turn up at the 2022 high at 114.78 (September 28) prior to the round level at 115
The prospects for extra gains in the dollar should remain unchanged as long as the index trades above the 7-month support line near 107.80. However, in the short term, DXY needs to reduce correction and create accumulation patterns before another bullrun breaks the top on Sep 28.
With a fast-moving train like the DXY, the reversal doesn't come from a day, but will take a long time to distribute before officially creating long-term reversal confirmation patterns.
My view: Bearish in the short-term
If bulls push harder and the index surpasses 114.00, then the next target of note should turn up at the 2022 high at 114.78 (September 28) prior to the round level at 115
The prospects for extra gains in the dollar should remain unchanged as long as the index trades above the 7-month support line near 107.80. However, in the short term, DXY needs to reduce correction and create accumulation patterns before another bullrun breaks the top on Sep 28.
With a fast-moving train like the DXY, the reversal doesn't come from a day, but will take a long time to distribute before officially creating long-term reversal confirmation patterns.
My view: Bearish in the short-term
Trade active:
Today CPI may be better than expected, because oil price was low last month.
Trade active:
Good move for DXY
Comment:
DXY tends to retest the 115 target again.
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