DXY Soars, Euro at Parity

12 lug 2022

The US dollar has soared once again, likely off expectations for tomorrow's CPI print. Inflation is expected to surprise again, potentially in the double digits, as US consumers can surely attest. Inflation in Europe is nearing double digits as well. We hit our target of 108.50 with ease, after breaking through the previous target of 107.20 and crossing a full handle. We are seeing some resistance at this target, with multiple red triangles as confirmation. At the time of this writing, the Euro is officially at parity with the USD, at 1.00 exactly at the time of this writing. This could suggest that a retracement is due, but any significant action may come Wednesday after CPI figures are released. We should see support at 107.20. The next target is at 109.86.