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The above is a daily chart. The USD’s green 5-day EMA has crossed back above its orange 13-day EMA. This has effectively moved the greenback into a mark-up phase which is typically defined by a bullish EMA formation. I.e. the green 5-day EMA > the orange 13-day EMA > the black 34-day EMA. Moreover, the RSI(9) is above 50 and indicative of bullish momentum (blue rectangle).
If the mark-up phase holds and given that the USD is typically the first in a chain of causality, other instruments will potentially line up as well. The USD responded well to core CPI data, which increased by 2.2% on an annual basis ending May. That is the biggest advance since February 2017. The tone of the FOMC statement today will be important in determining future USD direction. Economists are divided as to whether the Fed favours three or four rate hikes in 2018 and today’s release should make it clearer.
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