Photo by Denise Chan on Unsplash
 

Nothing has changed much recently. We are still seeing the dollar moving to the downside in a risk-on environment. But this is going to be a very important Friday because the US will release the PCE figures, which is the most important data for Fed policy decisions. Cuts are expected, so if the data comes in below forecast, then markets will be even more convinced that the Fed will cut rates, and this could bring the Dollar Index further down towards 97.70 gap.
 

DXY Daily Chart
 

However, keep in mind that if numbers disappoint and data is hot, then the odds for potential rate cuts could change and USD could see a rebound. But since we already broke wedge support, from a technical perspective, we would still expect more weakness. But even in a bearish environment we can experience rallies, and if we see one after data, it could still be only wave B or wave 2 within an incomplete decline, as long as the market trades below 100.35.

For a detailed view and more analysis like this, you can watch below our latest recording of a live webinar streamed on December 01: DIRECT LINK

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