U.S. Dollar Bearish Ahead of CPIs
2022.09.13 05:34
is making a sharp reversal as sentiment changed last week when 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 today, which will drive US yields today and the dollar, of course.
DXY daily chart.
