On Friday, the DXY found strong support at the 102 support level which saw the price bounce strongly to the upside (currently trading at the 103 round number level).
The DXY is approaching the key resistance area of 103.50 which coincides with the 50% Fibonacci retracement level of the bigger move down.
On Friday, the US Core PCE price index was released at 0.3% (Forecast: 0.4%) which signals a slightly lower-than-expected inflation growth. Although this indicates the potential for the US Federal Reserve to possibly slow down on further interest rate hikes, this also highlights some stability in the US economy. Hence the recovery of strength in the DXY.
If the DXY breaks above 103.50, the next key resistance level is at 104.22.
The DXY is approaching the key resistance area of 103.50 which coincides with the 50% Fibonacci retracement level of the bigger move down.
On Friday, the US Core PCE price index was released at 0.3% (Forecast: 0.4%) which signals a slightly lower-than-expected inflation growth. Although this indicates the potential for the US Federal Reserve to possibly slow down on further interest rate hikes, this also highlights some stability in the US economy. Hence the recovery of strength in the DXY.
If the DXY breaks above 103.50, the next key resistance level is at 104.22.
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