The US Dollar Index continues to climb as it is up 0.47% for the day. After creating a low to start the week, the price has rallied considerably with 91.200 as the next target.
This morning the US economy released its core retail sales data. The result came out at 5.9% versus the forecast of 1.1%, which is more than five times greater than expected. The Dollar responded to this news well and pushed above last week’s high. A bullish closure above 91.00 on the hourly time frames should pave the way for a move to 91.20.
Despite the positive US data, USDJPY is hinting at a possible short. Price action analysis hints at this play as the pair has rejected the high created in October by printing a shooting star. If price can clear the higher lows created on the smaller time frames, shorts will be explored.
Many of the majors have slipped today as a result of the Dollar’s bullishness. Tomorrow we have the Philly Fed Manufacturing Index and on Friday we have European PMI data. It’ll be interesting to see if these releases push pairs like EURUSD down or allow them to rebound.
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