DXY to continue rally in the short term

2022년 4월 23일

The US dollar index still display very strong fundamentals, with an aggressive rate hike as we could see multiple 50 basis point moves in the Fed meetings this year, starting next month. Market expectations are currently being priced in slightly lower than three 50 basis point hikes starting in the May meeting. Additionally, FOMC has started discussions on the balance sheet reductions and likely to provide more information on it in the May meeting.

From technical analysis point of view, there was a recent change of character (ChoCH) followed by 2 confirmations by break of structure (BOS) to the upside. Consider buys on the USD, if there is retracement back under 100 psychological levels and after sweeping trendline liquidity forming earlier.