Forex Trading Insights: Major Currency Pairs After CPI Report
Forex Trading Insights: Major Currency Pairs After CPI Report
Forex Trading Pro Matt provided a comprehensive forex market analysis, focusing on major currency pairs' reactions to the latest CPI report. He discussed the bullish breakout in the US Dollar Index, highlighting the large 0.75% intraday move and the breakout above key resistance levels like 104.250. Matt emphasized the importance of monitoring the 104.750 support level, as holding this area could pave the way for a push towards the 105.00 target.
In the USD/JPY pair, Matt noted the reclamation of the wild card area and the regaining of yearly highs, followed by a pullback to the 135.250 support. He also analyzed the GBP/USD's break below 1.26 resistance and the potential interaction with the trend line upon price recovery.
For the EUR/USD, Matt pointed out the bearish breakdown below support, the loss of a major quarter level, and the formation of a bear flag/pennant pattern, suggesting continued downside potential. Similarly, he observed bearish continuation patterns in the AUD/USD and NZD/USD pairs.
Matt also discussed the GBP/JPY's nice move up off news and the substantial move in the USD/JPY, with a potential target of 151.00 if support levels hold.
With no significant news scheduled for Wednesday, Matt anticipated the continuation of the current trends in the forex market.
Outline
Introduction
Forex trading market analysis
Impact of CPI numbers on the market
USD Index
Bullish trend breakout after CPI report
0.75% large intraday move
Breakout above 104.250 resistance zone
Push above 104.750, targeting 105.00 level
Stalled at 104.96, holding above 104.750 support
USD/JPY (USDJPY)
Reclaimed wild card area, regained yearly highs
Pullback to 135.250 support, holding above 135.500
Potential breakdown below 135.500, eyeing prior highs
GBP/USD (GBPUSD)
Broke below 1.26 resistance, needs to reclaim
No higher lows, trend line broken
Interaction with trend line on price recovery
Weekly open and trend line merge area of interest
EUR/USD (EURUSD)
Broke below support, flushed down
Loss of major quarter level, bear flag/pennant formation
Continued downside potential as the week progresses
AUD/USD (AUDUSD)
Loss of trend line and major wild card area
Flush and flag pattern formation
Bearish continuation
NZD/USD (NZDUSD)
Broke down, no higher lows
Flushed down, retested minor quarter level
Flushed further after retest
GBP/JPY (GBPJPY)
Nice move up off news
Pullback after testing highs
USD/JPY (USDJPY)
Substantial move off news
Pullback after testing 151.00 level
151.00 target if levels hold
USD Index Outlook
Watch for 104.750 support to hold
105.00 next target if support holds
No news on Wednesday, continuation of trend
Transcript
Good evening. And so yesterday we got a chance to talk about how the CPI numbers would indeed impact the market because of the fact that the market had beensideways as far as the dollar index coming into the report, coming into the CPI report, and we did get the bullish move off of the CPI report. We got over half percentmove, almost three quarters of a percent move for the day.
If you factor in the move in its entirety, it was over three quarters of a percent move, very large move. And so again, looking at the trend, this was a breakout of the earliertrend that began last week as far as that downward trend and breaking out above that. So we did get the breakout above there.
We also got the breakout of the zone that we talked about as well and that we outlined and that we had outlined for the past couple of weeks needing to break out and tohold. And that area was the 104 250 area. So we got the break above there as well as the break above this trend line as weekly open was held and so pushed up fromthere.
After it pushed up from there, we ended up getting it those 50 pips upward from that move. And so we ended up getting it up above the 104 750. The next location that itwas looking to go was that 105 area.
It didn't quite make it to the 105 area as it got stalled out at 100 and 496. We also saw a substantial move over here with the UC idea. Again, we talked about how importantthis trend line was and we said that if price continues to remain underneath it, it'll continue to get rejected.
Once it breaks above it, then it will be a very strong move. We did get a very strong move that not only reclaimed that wild card area, but also continued to push up toregain and reclaim highs that have not yet been seen this year. So we can get a pullback.
That pullback can come back to that 35 250 area and still be a substantial move that is holding. It still has support here over that 135 500 area, but it can likely break downbelow that area because of these prior highs that were from a few weeks ago. And so with that, that's what we're watching for the UC idea on this pullback, continue to holdthat area.
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