This post was originally published on this site.Westpac is looking for another leg lower in the US dollar and suggests selling the Dollar Index on a break of 99.40. The bank highlights 99.40 as key support over the past two months and would sell a downside break, targeting 98.00 with a stop at 99.90. Westpac said a benign July CPI report along with convincing steps towards reopening the Strait could provide the catalyst but we haven’t seen that this week. The important point is that this isn’t a live short yet. They’re waiting for the technical break rather than trying...

This post was originally published on this site.Traders appeared willing to give the CPI data the benefit of the doubt, particularly with housing accounting for roughly two-thirds of the overall increase. The initial market reaction sent the U.S. dollar lower, but across many of the major currency pairs, the dollar’s decline quickly ran into key technical levels. A number of those levels could not be breached. When the breaks failed, the price action began to reverse, with the U.S. dollar moving back higher. As a result, several of the major pairs have now returned to — or even moved through...