Dollar in consolidation during US-China trade talks [Video]

Markets are a bit slow after some holidays in parts of Europe yesterday, but more importantly, investors are still trading from a distance as US-China trade talks continue in London. Trump has confirmed that the talks are going well, and in fact, he also has a speech scheduled today at the US close, around 10:00 p.m., so it will be interesting to hear what he has to say about trade talks and how market will repsond, especially ahead of the US CPI report coming out tomorrow. That could make for tricky trading conditions until these events are out of the way.

So basically, I wouldn’t be surprised if the dollar index stays in some kind of triangle formation for now, or maybe even develops a one-two, one-two bearish scenario for wave five. But overall, it's still consolidation with a bearish tone, although we may need to wait a session or two before the market really starts breaking key levels. Important resistance remains at the May 28th swing high, and if we get any early strength in the dollar, I’d assume that rally would be faded.

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