The DXY Index recorded losses in Wednesday’s session, falling toward 104.70.

…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for FREE REGISTER to read full post below containing analysis. In case of any error or you think you are not able to read the full post below, please email us at support#nehcap.com [lwa][/s2If] [s2If current_user_can(access_s2member_level1)]

• The DXY Index recorded losses in Wednesday’s session, falling toward 104.70.
• Investors are taking profits from Tuesday’s rally following CPI.
• Focus now shifts to Retail and PPI data from January.

The US Dollar (USD) measured by the Dollar Index (DXY) experienced a dip on Wednesday as it declined near 104.70. This downward trajectory is primarily attributed to investors securing gains following the Greenback’s rally on Tuesday following January CPI results showing stubborn inflation. This fueled a recalibration of the Federal Reserve’s (Fed) rate easing expectations. For the remainder of the week, markets will eye the Producer Price Index (PPI) and Retail Sales to continue placing their bets on the next Fed decisions.

There is a growing market consensus that the Fed is unlikely to cut rates in the near term, supported by hot inflation data releases and cautious Fed officials. This adjustment in easing expectations will likely lend further strength to the USD after this consolidation. As for now, markets are delaying their prediction of the start of the easing cycle to June.

The Relative Strength Index (RSI) on the daily chart reflects a negative slope in positive territory. The dip in the RSI, typified by declining momentum, is indicative of reduced buying strength, which can be considered a potential sign of selling pressure. Simultaneously, the Moving Average Convergence Divergence (MACD) histogram shows flat green bars. Normally, this flat alignment would suggest a balanced state between buyers and sellers in the short term fueled by the profit-taking action of the bulls.

Despite these signals, the stronger indicator here appears to be the positioning above the 20, 100 and 200-day Simple Moving Averages (SMAs). This suggests that the overall trend remains bullish and that buyers are dominating the market in the longer term despite a potential short-term reversal.

Overall, although some pullback may be expected due to profit-taking in the short term, as reflected by the negative slope of the RSI and a flat MACD, the overall bullish trend seems to be intact with bulls maintaining substantial control.

[/s2If]

The NEHCAP currently runs the following trading systems for clients. They can be bought and run on your funds.

The system is trading live: LIVE ACCOUNT TRACKING
Contact Us: Contact
The HFT_FIX can be run free for 2 weeks on any broker with a ECN. Apply for a free trial
Join Our Telegram Group