Hanging Man on US Dollar Index precedes CPI
Daily
Price action on the US Dollar Index is interesting. Monday may have charted a hanging man (green arrow), which is considered a bearish candlestick. A hanging man comes after a sustained up move and has a buying tail and small body. Tuesday’s follow through was a long-legged doji, which indicated indecision by both bulls and bears. So far for today’s session we have a bearish candle (still to complete). No doubt, CPI data out today will alter the picture. However, it is interesting to note that price action seems to be indicating that inflation weakness is still a worry, despite yesterday’s PPI number. The MACD histogram is ticking down and may be indicative of weakness ahead. The CPI release in our view is very important and will reflect Fed policy going forward.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.