Trade Plan for the DXY 🇺🇸 (WN37)

Detail on the orders placed by Jeepson Trading at eToro and 5ers

FUNDAMENTAL AND SENTIMENT ANALYSIS

The most recent significant event was the CPI data on Tuesday that printed at 8.3 percent which was above expectations of 8.1 but still below the previous 8.5. The dollar reacted in a bullish manner due to market sentiment that had been pricing in a more steady path of interest rate hikes.

At the Jackson Hole Sympoisum Fed chair Powell did state that price stability could require borrowing costs to maintain in restrictive territory for a prolonged time, and that growth could consequently suffer.

The market focus now shifts towards the PPI today and Retail Sales tomorrow which may bring some volatility although unlikely to diminish the dollar bulls. The next Fed meeting is next Wednesday on September 21st and the CME FedWatch tool has odds on a 75bps hike, currently priced at 66% which was previously at 60%. Odds on a 100bps hike are climbing.

ORDERS

The momentum on the $DXY over the micro-term may weaken as it potentially creates a retracement level before climbing higher. The short-term uptrend will potentially create a support level but not expected to create a downtrend.

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DISCLAIMER

The content provided is intended for informational purposes only. Investments on the forex markets and trading decisions are made at your own risk.