Near-Term Dollar Strength Likely To Continue, Here Is The Target

The U.S. Dollar (DXY) broke-out of a wedge pattern in the last week. This signals near-term bullish upside. Upside is likely to 100,05 before the move is exhausted.

Longer-term, the downside is still the dominant force, so this bounce is just a near-term move. The near-term catalyst for upside is and likely will be economic data. Consumer spending and the job market continue to show resilience, likely from the stock market being at all-time highs and consumers not seeing major inflation yet from the tariff/trade war.

However, after the move to 100.05, caution on the greenback should resume. The macro still points to further downside.