CPI Smashes the Dollar

11 août 2022

The DXY tumbled off CPI, with 8.5% inflation considered a 'beat' because it came in lower than the estimate of 8.7%. The DXY broke the lower bound of the range at 106.13, and tumbled through the 105's, finding support in the 104 handle. We tested our level at 104.83, with a green triangle on the KRI confirming support. We then tested the next level above at 105.25, but resistance here was prohibitive. Currently, we are testing 104.83 again. We should have strong support from levels below in the low 104's, but after that there is a vacuum zone to 103.24.