We’ve seen a multi-week correction in the USD Index after peaking at 103.815 on 1/3/17 and trading down to 99.76 in the early morning hours today. Since this morning, we’ve seen a strong rejection of the low, trading as high as 100.73 in today’s session. With the recent upward trend in growth and inflation (CPI hit a 32 month high) since the 4th quarter of 2016, we fully expect the USD remains locked in its bullish formation at least in the near-term. Tomorrow, we’ll receive another US GDP reading (Expecting 2.2%) and US Durable Goods Orders (+2.6% Expected), and could provide further evidence of a strengthening economic picture here in the US. This coupled with a “hawkish” tilt to the Federal Reserve, should further strengthen the case for a strong dollar in weeks to come. The dollar should fight to overcome its recent downward slide as the data continues to paint a brighter picture, but must first overcome its down channel resistance level of 101.25. Good Luck!
Series 3 Licensed
Senior Market Strategist
Follow John on Twitter @JCarusoRJO.
John began his career at Wilshire Quinn Capital, a Wealth Management Firm based out of Los Angeles, California. Prior to becoming a broker he did some individual trading on his own, where he first began to study and interpret different market strategies and ideas. In 2006 John moved over to Lind-Waldock where he began to service clients as a professional broker. He joined RJO Futures in 2011.