If we look at the technical analysis of the Bloomberg Dollar spot Index, then we have a strong demand to raise the dollar. The high inflation and Fed's comments over the past few days have led to the formation of the Double Bottom formation, and if we add Stochastic to the price movement, the picture becomes complete. The indicator goes out of the over-sales zone and points up - the upward pulse remains in effect.
What follows from now on?
If the USD succeeds in keeping the upward momentum, the Double bottom formation will be activated and further growth to levels of 1194.82 will become fully possible. Fundamentally, it seems that there is nothing to be seen against the dollar's growth, and considering the Fed's determination to tighten monetary policy and high inflation, we expect the dollar to reverse the trend or, at least, to consolidate.
Source: Bloomberg Pro Terminal
Jr Trader Petar Milanov
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