US dollar was steady on last Friday, amid small declines capping a good week. While reversing much of its previous advances. The spotlights are on this week’s inflationary statistics.

The US currency gained substantial momentum in the early days of Feb. Following Powell, Chairman stated that lowering rates in March was unlikely. He underlined the need for more evidence of reducing prices prior to the US Fed can be secure in cutting rates, thus new information will be critical. In the coming days, the USA will announce CPI numbers for Jan. That will most likely define the trend for the US currency in the near future.

Key Highlights

Last Friday, the dollar index DXY was trading at 104.15, down slightly.

The BLS trimmed America’s Dec inflation statistics lower.

The following week, the January’s CPI is forthcoming.

US dollar and DXY Technical Analysis

DXY Current Ratee: 

After the correction to peaks of 104.60 at the start of Feb. Offerings will probably to have been overcome near daily barriers near 104.15 mark. Following a minor pullback, this paves the way for a probable revisit of adjacent supports at 103.62 area. Which is supported through the 200 D-SMA with channel protection stretched back to the low of 100.62level. As we observe, this region, along with a fresh upswing forming after the US currency bottomed in the final days of Dec of last year.  Provides significant technical convergence for possible dips investors if the dollar seeks lower prices in the coming days.

Another instance: Breakthrough buy.

Considering the absence of sales at the end of the previous week. It is conceivable that the previously mentioned supportive region may remain uncontested throughout the week. As a result, if we observe further closure over present obstruction. Investors will probably move to shorter time –scale. In quest of weakening future tests again around the point in order to target new YTD peaks as well as every day obstacles at 105.04 area.

Daily Pivots

Daily Moving Averages