Tuesday’s US Consumer Price Index (CPI) came in hotter than expected, sending the dollar above 104.50 resistance.
But will it hold, and what does it mean for the EURUSD?
Watch today’s video for all the details, including key levels and targets for February!
Let’s get started!
Today’s US CPI surprised to the upside, triggering dollar bids and risk-off moves.
This was a concern I mentioned in Monday’s video, noting that inflation may remain stickier for longer.
Unsurprisingly, the DXY is rocketing higher today, breaking above the 104.50 resistance area we’ve discussed.
Of course, it will take at least one daily close, preferably two, above this region to secure the breakout and expose 105.00 and 105.80.
A confirmed break above 104.50 would be a significant development from the dollar, as it would take out the highs from November.
That could be a sign of additional bullishness from the USD in 2024.
It would also mean a lower EURUSD toward 1.0650 and possibly the 1.0450 2023 lows.
However, the euro needs to secure a close below 1.0730 to expose downside targets.
As maintained since January 2, 2024, I remain bullish on the dollar while carving higher highs and lows.
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