The US Dollar (USD) rebounded overnight after the Core CPI report and Hourly Real Earnings surprised to the upside, note OCBC FX analysts Frances Cheung and Christopher Wong.
USD shorts could face another squeeze
“The upside surprise in US data serves as a reminder of how crowded USD shorts can be, potentially triggering another squeeze – this also underlines how US data can prove asymmetric to USD price action. Today we have PPI and Initial Jobless Claims. Another better-than-expected data in favour of the US could see dovish expectations dampened.”
“In this regard, USD shorts could face another squeeze. DXY was last at 101.82. Daily momentum is bullish while RSI has turned higher. Resistance at 102.20 (23.6% Fibonacci retracement of 2023 high to 2024 low). Support at 100.50 levels.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
