Forex Trading Library

Intraday Analysis – CPI Shakes Up the Market

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GER 40 Index hits another high
Chart displaying the record high of GER 40 index amidst rumors of technical recession.

The GER 40 index (DAX) topped another record as the index shrugged off rumours of a technical recession. With a bearish divergence underway, prices decreased slightly from 17900. 17650 is critical support to keep the index propelled as its breach would force buyers to exit the market and could trigger a liquidation towards 17000. The psychological level of 18000 will be the next target for bulls should price action take another turn higher.

USDCHF breaks lower
Chart showing the fluctuation of USDCHF after mixed CPI data.

The US dollar fluctuated after mixed CPI data. This could indicate that the Fed is not yet ready to cut interest rates anytime soon. Coming off the newly formed double bottom at 0.8730, a break above 0.8790 suggests that bulls may have turned the tide. As the RSI bounces back from the oversold area, 0.8880 is the next level to see if any buying interest would emerge, and 0.8850 is the first resistance to lift should this happen.

USDCAD seeks support

Chart showing the reaction of USDCAD to inflation data.

The Canadian dollar softened as inflation data was the main fundamental driver across the board. The pair turned north at 1.3500 as the daily RSI’s oversold condition combined with a bearish divergence suggests that prices need some breathing room. Following the general trend, bears will be looking to stamp their mark as 1.3460 becomes the first support. A break past this opens up 1.3420 for fresh monthly lows.

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