US Dollar Recovers from Lows, Awaits CPI Data

The US dollar has gained some momentum following the selloff from our bull channel breakdown that brought us down to support at 95.82. We saw strong support here, and have rebounded to the 96 handle. Our first technical level in this handle at 96.24 provided some resistance, but we were able to break through it and are currently gunning for 96.44. A red triangle on the KRI is confirming that we are starting to see resistance at this level. From here, the DXY should rise further if CPI data shows continued inflation. We could break through to the top level in the 96 handle at 96.65, or even higher depending on the data. Otherwise, we could retrace back to support at 95.82.