DXY Parabolic Curve Pattern Retest
The parabolic curve pattern DXY has been forming for over 16 months was broken on October 21st.
DXY bounced at the 109.53 level and now appears to be retesting the curve.
I see the following support levels if DXY is rejected at the curve.
1) At the previous bounce level (109.53)
2) Near the 105 level.
3) Near the 101 level.
Thoughts:
1) The hawkish FED continues to fuel the dollar.
2) Next weeks CPI numbers will be very important. If there isn't a significant drop, that will strengthen the FED's resolve to remain hawkish.
3) A strong labor market also emboldens the FED's hawkish stance. Until there is a significant sign of labor market weakness, the FED will remain hawkish.
4) With every FED meeting and rate hike, the likelihood of the FED overshooting increases.
5) Everything here is just my opinion and may be flawed.
DXY bounced at the 109.53 level and now appears to be retesting the curve.
I see the following support levels if DXY is rejected at the curve.
1) At the previous bounce level (109.53)
2) Near the 105 level.
3) Near the 101 level.
Thoughts:
1) The hawkish FED continues to fuel the dollar.
2) Next weeks CPI numbers will be very important. If there isn't a significant drop, that will strengthen the FED's resolve to remain hawkish.
3) A strong labor market also emboldens the FED's hawkish stance. Until there is a significant sign of labor market weakness, the FED will remain hawkish.
4) With every FED meeting and rate hike, the likelihood of the FED overshooting increases.
5) Everything here is just my opinion and may be flawed.
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