So it looks like the dollar finally broke after yesterday’s US CPI data here. Inflation numbers were lower than expected, allowing for more rally against the dollar, which appears to be on its way down now.
I’ll get to the charts later in the session but here’s a general overview.
- EUR/USD has breached the April-May highs to the highest levels since March 2022, and is eyeing the 200-week moving average at 1.1181 plus the next 1.1200 handle.
- USD/JPY Extends Below 140.00 As Fall Continues, Sellers Have A Look At The 100 And 200 Day Moving Averages At 136.97 – 10 Next
- GBP/USD is currently testing the waters above 1.3000, hoping for an extended bullish break above the figure level with little in terms of major resistance yet.
- USD/CHF is dropping to its lowest levels since January 2015 after breaking below the 2021 lows under 0.8800 and there is not much technical support on the charts now
- AUD/USD consolidates the break above key resistance from the 100 and 200 day moving averages, and appears to be chasing back towards the June high near 0.6900 again
- NZD/USD clears June high in its push back above 0.6300, buyers eye key resistance area around 0.6379-89 next – which halted April-May rally
Technical indicators and the risk mood suggest that we are poised to continue the moves from yesterday. There is little on the agenda in Europe to distract from it. But in retrospect, we have the US PPI numbers and weekly jobless claims to deal with. Not to mention that federal policymakers still have only today and tomorrow to say anything before the blackout period begins.
0600 GMT – UK monthly GDP figures for May
0645 GMT – Final figures for France’s CPI for June
0900 GMT – Eurozone industrial production in May
That’s it for the next session. I wish you all the best in the coming days and good luck with your trading! Stay safe out there.