A reversal on good news is a bad sign
The US dollar is at least 75 pips from the post-data highs, right across the board.
The CPI, Empire and retail sales headlines were great. The one drawback was flat real wage growth from Jan 2016 to 2017. That's the kind of thing that would encourage the Fed to wait.
Later data on industrial production missed the mark and that's when the selling ramped up.
It's taken on a life of its own since and there is definitely a bit of an intraday squeeze underway now.
The thing to watch now are the daily charts. There are no big reversals but there are a handful of dojis and that can be an early sign but we'll have to see how the rest of today and tomorrow goes. In particular, EUR/USD, GBP/USD and USD/JPY look vulnerable.
One that stands out as a possible breakout is AUD/USD. If it closes above the recent highs, or above 0.7700, then it will be looking particularly good.
