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Inflation About To Blast Off Or Is Peak In Play?

By Chris KimbleMarket OverviewJan 13, 2022 12:32PM ET
www.investing.com/analysis/inflation-about-to-blast-off-or-is-peak-in-play-200614660
Inflation About To Blast Off Or Is Peak In Play?
By Chris Kimble   |  Jan 13, 2022 12:32PM ET
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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.
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!

Inflation About To Blast Off Or Is Peak In Play?
 

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Inflation About To Blast Off Or Is Peak In Play?

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Comments (5)
Gastrointestinal and Liver Consultants
Gastrointestinal and Liver Consultants Jan 14, 2022 1:03AM ET
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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
Adam Paine
Adam Paine Jan 13, 2022 11:37PM ET
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not even close to stopping
Steven Kilgore
Steven Kilgore Jan 13, 2022 9:41PM ET
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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.
Shane Zhang
Shane Zhang Jan 13, 2022 4:43PM ET
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what is the point to write those thing all the tie without any directional bet????
Ayumastura PinkLady
Ayumastura PinkLady Jan 13, 2022 1:00PM ET
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will inflation subside if oil price keep moving higher?
 
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