U.S. Dollar Bearish Ahead of CPIs
Gregor Horvat | Sep 13, 2022 04:26AM ET
USD Index is making a sharp reversal as sentiment changed last week when ECB raised rates by 75bp, so it appears that the USD will now give some moves back as other CB trying to follow the FED.
From an Elliott wave perspective, we see a nice turn down on a 4h time frame, with an impulsive intraday sell-off that came out of a wedge pattern, which is usually an early indication for reversals.
We also see a divergence on the RSI that also suggests limited gain. So, we are turning bearish now, and it looks like there can be more weakness coming after any intraday rally.
Resistance can be near 109.15, which was also the high back in August. But don't forget we have US CPI today, which will drive US yields today and the dollar, of course.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.