US August Inflation Meets Expectations

US inflation coming in line with expectations may have a limited effect on the DXY. Technical indicators: RSI at 61, nearing mild overbought territory, while MACD is just below the signal line and moving sideways. The price is above the SMA20 and SMA50, maintaining a short-term positive trend but momentum is weak. Since the news did not cause a major change in Fed rate expectations, DXY is likely to remain in its current range. In the 1-3 day horizon, direction is uncertain, with no strong breakout signal.

Although inflation coming in line with expectations somewhat reduced uncertainty in the market, the S&P 500's 1.58% decline over the past 24 hours and the RSI approaching oversold territory at 29.8 may limit short-term buying interest. The MACD is negative and below the signal line, indicating that momentum remains weak. The price is trading below the SMA20 and SMA50, suggesting that the short-term trend is downward. Although the news flow is neutral, the technical picture has not yet produced confirmation for a recovery. Therefore, a sideways/downward movement is more likely in the 1-3 day horizon.