Forex Trading Library

Intraday Analysis – CPI Data Lifts Dollar Spirits

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USDJPY bounces off support
USDJPY chart: USDJPY bounces off support with optimistic CPI data

The US dollar grinds higher after moving away from February’s firm support. Optimistic CPI data saw a return to form for the greenback as price action moved against the Yen. A subsequent break above 147.40 triggered a reversal after the pair lost over 300 pips in a few short sessions. 149.00 is the next level to see if buyers return, with 148.10 becoming fresh resistance. Failing that, 146.90 could be in the bears’ crosshairs, highlighting the significance of CPI data in driving market sentiment.

EURGBP double bottom lift
EURGBP chart: shows a double bottom lift amid progressive eurozone unemployment data.

The euro is attempting a comeback as the bloc’s unemployment data remained progressive. From the chart’s perspective, the pair is still inching higher despite a choppy path. A break above 0.8530 continues to put intraday bears on the defensive. The base of the recent double bottom at 0.8500 is a significant level to keep the directional bias up. Otherwise, a fall below that support could cause a bearish reversal. A daily close above 0.8580 would see the rally resume.

SPX 500 another day, another record
SPX 500 chart: SPX 500 hits another record despite hotter-than-expected inflation report.

The S&P500 rose to a record close despite a hotter-than-expected inflation report. Oracle shares were up over 11%, which helped the index notch another high. With a bearish RSI developing, traders fear a turnaround in price action. A break below the daily support of 5100 could start the correction, with 4990 being the first support. 5200 becomes the next resistance on the way to another record move.

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