After the exaggerated drop in the DXY last week following a marginal miss on US CPI, the USD has regained some of its poise. The DXY has returned to 101, a level which provided solid support through most of H1 23. A rebound in US yields has likely played its part in the bounce-back, as equity markets remain elevated suggesting little or no ‘safe haven’ element to the USD recovery. Price has bounced off the 200 EMA(Green) data dependent this week it could be the pullback needed to enter EUR/USD longs from the 1.11 level.
DXY Daily Chart
We will be monitoring how price reacts at the 20 EMA(Blue) to see if we form a lower high.
DXY Daily Chart