US dollar is one of the best performing G10 currencies today. US currency continued the upward move launched yesterday after release of solid housing market and consumer confidence data. Greenback was also supported by relatively weaker performance of other currencies, like CAD or AUD, which dropped due to softer CPI data released yesterday and today. Fed Chair Powell has once again struck hawkish but somewhat cautious tone today when he took part in policy panel at ECB forum in Sintra, Portugal. Powell said that he does not see core inflation dropping to 2% this year or the next year and that he wouldn't rule out possibility of moving at consecutive meetings if needed. While USD gained further during Powell's remarks, it has given back some gains after panel discussion ended.
Taking a look at USD index (USDIDX) at H1 interval, we can see that the index has once again attempted to break above the resistance zone ranging between 102.75 mark and 38.2% retracement of downward impulse launched in late-May. Bulls failed to push the index above and a pullback can be observed at press time (orange circle on the chart below). A potential double top was painted on the chart and should USDIDX continues to slide, traders should watch 102.00 as the neckline of the pattern. A break below this area could hint that a deeper drop is looming.
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Source: xStation5
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