In addition to the recent release of slower CPI growth at 7.7%, on Friday, the US consumer sentiment was released at 54.7 which was significantly lower than expected (Forecast: 59.5).
This compounded the recent negative sentiment over the DXY, causing the price to fall significantly from the 109.55 price level toward the 106 support area.
While the DXY is likely to consolidate at this level (with some brief upside, possibly to retest 107, with resistance at 107.60), look for the price to break below the 106 area to signal a continuation of the downside, with the next key support level at about 104.60 (previous swing low in August)
This compounded the recent negative sentiment over the DXY, causing the price to fall significantly from the 109.55 price level toward the 106 support area.
While the DXY is likely to consolidate at this level (with some brief upside, possibly to retest 107, with resistance at 107.60), look for the price to break below the 106 area to signal a continuation of the downside, with the next key support level at about 104.60 (previous swing low in August)
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