Forex Trading Insights: Dollar Rangebound Ahead of CPI
Forex Trading Insights: Dollar Rangebound Ahead of CPI
Forex Trading Pro Matt provided an overview of the dollar's performance and outlook given upcoming economic data releases. The dollar was rangebound today ahead of Wednesday's CPI numbers and UK employment data. The dollar is positioned to break higher above 104.50 minor quarter level resistance if CPI is strong. The EUR/USD remains below weekly open with support at higher lows. The AUD/USD made a bullish break above minor wildcard resistance. The NZD/USD continues to make higher lows above 61.50 support. The GBP/USD bounced off the trendline and has support at weekly open. The GBP/JPY also broke bullishly above the trendline near weekly open. The outlook is for pound strength on positive UK data and potential dollar gains on bullish inflation figures this week.
I. Forex Trading Pro Matt Reviews Major Currency Pairs Ahead of Key Events
II. Dollar Rangebound Ahead of Wednesday CPI Data Release
Dollar paused with support at early week open buy level
Resistance at 104.50 minor quarter level
Awaiting Wednesday CPI and UK employment data for next dollar move
III. Potential for Dollar Breakout Higher Above 104.50
Strong CPI could trigger dollar break above trendline
Breakout momentum could continue through 104.50 minor quarter level
IV. EUR/USD Remains Below Weekly Open After Rejection
Trading underneath weekly open resistance
Has support at higher lows
V. AUD/USD Bullish Breakout Above Minor Wildcard Resistance
Closed above former wildcard resistance now support
Move came after repeated rejections at level
VI. NZD/USD Makes Higher Lows Above 61.50 Support
Pattern of higher lows continues
61.50 and weekly open provide support
VII. GBP/USD Bounced Off Trendline With Support at Weekly Open
Price bounce came after test of ascending trendline
Weekly open adds to trendline support
VIII. GBP/JPY Breaks Bullishly Above Trendline Near Open
Close above trendline resistance now support
Next target is 149.50 resistance
IX. Pound Outlook Positive on Good UK Employment Data
GBP positioned well technically ahead of releases
GBP could strengthen on upbeat UK numbers
X. Dollar Eyes Inflation Data for Catalyst Higher
CPI expected to show still elevated inflation
Strong inflation to boost dollar higher
Good evening. So today actually ended up being a pretty tame day for the dollar overall.
And the reason being is because of the fact that there is much news that is coming out later on this week. So with that news that's coming out later on this week, the dollar has paused before that move. And so before that move, we just have the dollar remaining where it ended the week last week, having the support of that early weekbuy from the weekly open and then the resistance up there at the minor quarter level of 104 to 50.
And so that's what we started this week off with. But as we look to tomorrow's CPI numbers, because we have those numbers as well as the report coming out for the pound with their employment change and their claimant count change numbers. So with both of those, we definitely will end up seeing a move here with the dollar.
So the dollar has the potential to break to the upside and then with the strength of making it through this trend line, it can then break through that minor quarter level. Andso the force and the strength of which it can break here could cause for the price to continue through the minor quarter level as well. And so we also see for the UC ideas with this one, this one is down for the week because of the fact that the dollar has not moved for this week.
But then also this one has also been rejected at last week's open. So last week's open and this week's open aren't too far apart. You can see these two weekly opens here,not too much separation at all.
And so the move would need to be a substantial move in order to gain the momentum of not only this week but also last week and then make it above the trend line as well. And so right now, because price is underneath the trend line, the trend line is going to be resistance. Price gets above the trend line, the trend line will be support for it.
We see for the guid, the guid does have this support. We talked about this one today in being above that 126 level, but then also making these higher lows consistent higher lows hanging out right at weekly open. This is all very bullish for the pound going into the news tomorrow, as well as kind of seeing what it is that we're going to be expecting for the dollar itself.
And so again for the dollars news, again for the EU idea, this one is underneath weekly open, but it does have this support here as far as higher low, higher low. So we'll continue to watch this one and see how this one takes place and what transpires for the EU idea. For the Au idea, we do again see these higher lows forming, but we could also have price
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