DXY Retraces from Highs, Awaits CPI

The DXY has retraced from 108.50, which was our exact profit target, and one that we have been very vocal about. We have hit that target with suprising ease, however a red triangle on the KRI has confirmed resistance there, and we have subsequently retraced, but are still holding the 108's with ease. The DXY is clearly awaiting the US CPI print, and expectations are for another wild figure, potentially nearing 10% as with the last figure and the most recent CPI reading out of Europe. If we rally yet again, 109.86 is the next target. If we retrace, we will have support from 107.20.