The US Dollar Index (DXY) trades slightly higher at 103.05 despite hotter-than-expected US Consumer Price Index (CPI) figures. Markets still anticipate Fed rate cuts starting in June, limiting the USD’s rebound potential.
Technical Outlook:
- Mixed Signals: While recent momentum indicators (RSI, MACD) suggest a potential bullish reversal, the DXY remains below key SMAs, indicating broader bearish control.
- Conflicting Dynamics: Short-term buying momentum needs to overcome significant selling pressure at key SMAs to shift the long-term outlook.
Key Factors:
- Fed Rate Cut Expectations: Markets continue to price in rate cuts, weighing on the USD.
- Technical Resistance: DXY faces strong resistance at key SMAs.