On Friday, the US Core PCE price index was released at 0.6% (Forecast: 0.4%). As the Core PCE price index is a key inflation indicator for the Federal Reserve, a stronger-than-expected change signals that we could see further interest rate increases from the FOMC.
This is also why following the news release, the DXY climbed steadily from the 104.65 price level up toward the 105.30 price area.
Currently consolidating above the 105 price level, look for the price to retrace briefly (possibly toward the 104.80 level (supported by the horizontal level and the upward trendline) before resuming to trade higher again, toward the next key resistance level of 105.80.
This is also why following the news release, the DXY climbed steadily from the 104.65 price level up toward the 105.30 price area.
Currently consolidating above the 105 price level, look for the price to retrace briefly (possibly toward the 104.80 level (supported by the horizontal level and the upward trendline) before resuming to trade higher again, toward the next key resistance level of 105.80.
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