The US dollar breaks the 4H descending triangle on better than expected consumer price data this morning, printing a 1.7 percent increase versus economist estimates of a 1.6 percent; but, this figure still remains lower than the Fed's two percent target, and, perhaps much lower that Fed Chair Janet Yellen wants it.
The dollar likely got a boost on disappointing Canadian data, which saw retail sales contract .3 percent. The Bank of England's Monetary Policy Committee (MPC) voted once again not to increase interest rates. Both the loonie and Sterling trade lower.
The price action will become bullish with a close above the descending trend line with 85.90 being the nearest likely resistance level before retesting 86. The dollar could a boost higher, as COT data shows the largest flood of speculators into the dollar futures hits record levels. If price action trades back within the triangle, look for a retest of the broken resistance, now support, lines (magenta).
Neutral on the dollar short-term, as I expect pops of action to occur. However, I remain bearish on the dollar 3-13 months out.
The dollar likely got a boost on disappointing Canadian data, which saw retail sales contract .3 percent. The Bank of England's Monetary Policy Committee (MPC) voted once again not to increase interest rates. Both the loonie and Sterling trade lower.
The price action will become bullish with a close above the descending trend line with 85.90 being the nearest likely resistance level before retesting 86. The dollar could a boost higher, as COT data shows the largest flood of speculators into the dollar futures hits record levels. If price action trades back within the triangle, look for a retest of the broken resistance, now support, lines (magenta).
Neutral on the dollar short-term, as I expect pops of action to occur. However, I remain bearish on the dollar 3-13 months out.
