US Dollar Index Holds key Support Post CPI Data, Powell day 2 eyed

Intermediate
  • DXY continues to grip key Fibonacci support post U.S. CPI data
  • U.S. June Core CPI comes in at 0.3%, its largest monthly increase since Jan 2018. US Treasury Yields rally. EuroDollar & Fed Funds Futures drop, suggesting lower chance of rate cut.
  • After yesterday’s rejection and 0.45% selloff from the 61.8% fibo at 97.15 of the May-June decline, the Dollar Index sold off to touch the 38.2% retracement at 96.47.
  • 96.47 key fibo support has stalled any continuation to the downside.
  • Near-term 50/21-4Hr EMA’s turning lower and may offer resistance to rally attempts. 50/21 EMA’s reside at 96.62 & 96.75 respectively.
  • Momentum studies aligned bearishly as MACD falls below zero and RSI trades at 37. Studies highlight downside risks.
  • If 38.2% level is shattered, next key supports tied at 96.25 and 96.04, latter being the 23.6% Fibonacci level of the aforementioned fall.
DXY Chart

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