DXY Bull Channel In Focus
The rally in the US Dollar this week has seen the DXY breaking out above the prior 2021 highs around 94.63, trading up as high as 96.30. However, the move into the bull channel top has been met with some initial selling, bringing price back below the 95.86 level for now. While momentum studies are both bullish and sentiment remains firm, there is room for some corrective action here give the ground we have covered this week. However, any retest of the 94.63 breakout zone will likely provide the opportunity to reload longs looking for a move back up through highs and beyond as the bull channel continues to develop.
Key Data to Watch
Philly Fed manufacturing and weekly unemployment claims later today will be key release to watch. Given the increase in hawkish Fed expectations, any disappointment will likely see a sharp move lower as late comers to the rally fold their hands. Beyond that, we have a raft of Fed members speaking today and tomorrow with markets keen to hear if there has been any hawkish shift in tone following the latest inflation data.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.