Dollar's CPI Rally Forming 'Right Shoulder' on AUDUSD H&S
The Dollar is rallying across the board after the significant CPI beat. The 'market's favorite inflation reading' has accelerated to the fastest pace on the headline read since 2008 and fastest for the 'core' figure since Dec 1995. Going to be hard for the Fed deny the price pressures - but I wouldn't count out their commitment just yet.
While there are a bunch of interesting technical patterns amongst the USD crosses (GBPUSD, USDCNH, etc), I am keeping in mind AUDUSD where the implications for the Dollar run is actually traversing a range. That said from 0.7900 to 0.7550 can solidify as the 'right shoulder' of the head-and-shoulders pattern that has developed throughout 2021.
H&S patterns do not guarantee reversal, but they highlight the potential for a turn better than a sharp, short-term reversal that rarely happens.
The DFX article on the inflation reading: www.dailyfx.com/fore...to-4.2-in-april.html
While there are a bunch of interesting technical patterns amongst the USD crosses (GBPUSD, USDCNH, etc), I am keeping in mind AUDUSD where the implications for the Dollar run is actually traversing a range. That said from 0.7900 to 0.7550 can solidify as the 'right shoulder' of the head-and-shoulders pattern that has developed throughout 2021.
H&S patterns do not guarantee reversal, but they highlight the potential for a turn better than a sharp, short-term reversal that rarely happens.
The DFX article on the inflation reading: www.dailyfx.com/fore...to-4.2-in-april.html