Inverted Price Action with DXY and Gold

On the left side, we have the DXY (4hr) and on the right Gold (4hr)

DXY Bearish Confirmations Include:

• RSI Below 50
  
• MACD Convergence
  

Gold Bullish Confirmations Include:

• Above 200 SMA
  
• MACD Divergence
  

Along with these confirmations, price-action may be limited by either near-term support and resistance levels as illustrated on the respective charts.

== DRIVING SENTIMENTAL FACTORS ==

Yesterday's testimony by Fed Chairman Jerome Powell consistency reinforced the Fed's inflation expectations to be transitory. The Fed also continues to restate how they will provide lots of notice in advance for if or when they intend to taper. The Fed wants to see substantial growth and unemployment reach pre-pandemic levels. According to the Fed, the current inflation is primary driven by bottleneck supply shortages and believes once the labor force improves that these shortages will dissipate and thus return inflation to lower levels.

The Fed is scheduled to meet in 2 weeks for another FOMC where they will address their new viewpoints and economic expectations. But until then, as there's no set timeline for tapering and the U.S economy still remains uncertain with the Delta variant, this may cause some continued weakness with the greenback as we're seeing today.