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Inflation About To Blast Off Or Is Peak In Play?

Published 01/13/2022, 12:32 PM

Current data suggests that inflation has been in our everyday lives for several months. And today’s Producer Price Index data was pretty ugly.

But Could inflation Be Peaking?

Today’s chart 2-pack offers a glimpse of why inflation could subside over the near term.

Here we look at the “monthly” chart of the US dollar and euro currencies. It’s pretty easy to see the rising trend channel for the US dollar and the falling trend channel for the euro. Both currencies have also formed a wedge pattern, with the dollar testing resistance and the euro testing support.

U.S. Dollar And Euro Monthly Charts.

Inflation will likely subside if the US dollar breaks out to the upside (euro break to the downside). However, if the dollar turns lower and breaks its own support, then inflation could take off.

It seems like a pretty important pennant pattern to watch. Stay tuned!

Latest comments

Inflation will take off if the dollar sinks. That has to ba an epiphany! Why put an article out if it contains zero useful information
not even close to stopping
Inflation will “subside” only because it’s at at highs not scene since Carter. If it gets much worse Biden is going to get hauled out of the White House at the end of a pitch fork.
what is the point to write those thing all the tie without any directional bet????
will inflation subside if oil price keep moving higher?
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