DXY Begins to Unwind

Jul 29, 2022

The DXY has retraced a bit but found support at 105.78. The retracement follows as the dollar strength is unwinding due to investors gradually flowing back into other assets, as they seem to be anticipatign a more dovish Fed after GDP numbers yesterday formally confirmed that we are in a recession, by definition. We got a nice pivot from 105.78, which took us back to the value area between 106.13 and 107.20. If we are able to break out, then 108.50 is the next target. If we retrace further, then 105.25 should provide support.