USD looks poised for a pullback after its seven-week
Fundamental
The US dollar looks poised for a pullback after its seven-week rally as Friday’s hot PPI print failed to spur gains.
Hotter-than-expected PPI (0.3% MoM, cons. 0.1%, prev. -0.1%) sent the DXY up briefly on Friday, then came down to a lower level than the pre-announcement level.
Although the DXY will remain high, further upside is limited.
Technical
DXY rebounded after the price fell to touch EMA78. Downward momentum is weakening. The index may return upward following the major uptrend.
A breakout below 103.90 may change the price structure downward.
On the contrary, 105.00 will be the first resistance if the index bounces.
The US dollar looks poised for a pullback after its seven-week rally as Friday’s hot PPI print failed to spur gains.
Hotter-than-expected PPI (0.3% MoM, cons. 0.1%, prev. -0.1%) sent the DXY up briefly on Friday, then came down to a lower level than the pre-announcement level.
Although the DXY will remain high, further upside is limited.
Technical
DXY rebounded after the price fell to touch EMA78. Downward momentum is weakening. The index may return upward following the major uptrend.
A breakout below 103.90 may change the price structure downward.
On the contrary, 105.00 will be the first resistance if the index bounces.