That is a very bearish monthly candle for DXY.
We might see a jump back after January but the trend is on the downside now.
Lots of traders are long dollars so the pain trade has to be ever lower DXY. Look at the CFTC dollar positioning.
There is a beautiful channel support around 96, bears will be targeting that zone over the next couple of months.
If PCE comes in lower today, we will see huge downside on the dollar. Fed are done for good for hikes and we had Fed Speaker Waller coming out and suggesting they might need to cut if inflation comes down. Waller is a hawk.
We might see a jump back after January but the trend is on the downside now.
Lots of traders are long dollars so the pain trade has to be ever lower DXY. Look at the CFTC dollar positioning.
There is a beautiful channel support around 96, bears will be targeting that zone over the next couple of months.
If PCE comes in lower today, we will see huge downside on the dollar. Fed are done for good for hikes and we had Fed Speaker Waller coming out and suggesting they might need to cut if inflation comes down. Waller is a hawk.