The DXY broke down from the 102 support level (now turned resistance) following the release of the US CPI data overnight.
CPI y/y was released at 5% which indicated a consistent slowdown in inflation growth for the US, leading to increasing market expectation that the Federal Reserve is likely to pause on further interest rate hikes (hence the significant move lower on the DXY.
Currently trading at the 101.50 price level, the DXY is likely to consolidate along this price level before continuing with the downtrend toward the next key support level of 100.85.
However, watchout for a brief bounce on the DXY, with the 23.6% fib retracement at the 101.77 price level providing possible interim resistance.
CPI y/y was released at 5% which indicated a consistent slowdown in inflation growth for the US, leading to increasing market expectation that the Federal Reserve is likely to pause on further interest rate hikes (hence the significant move lower on the DXY.
Currently trading at the 101.50 price level, the DXY is likely to consolidate along this price level before continuing with the downtrend toward the next key support level of 100.85.
However, watchout for a brief bounce on the DXY, with the 23.6% fib retracement at the 101.77 price level providing possible interim resistance.
