11 December 2019

US inflation: Wednesday, 13:30. The Consumer Price Index (CPI) report is out just hours before the Federal Reserve’s decision and may impact the tone. Back in November, Core CPI disappointed by sliding to 2.3% yearly, losing steam after a few robust months. Consequently, Core PCE – the Fed’s favorite gauge of inflation – dropped to 1.6%, getting further away from the 2% target. A similar score is likely now. Monthly Core CPI advanced by 0.2%, and it is expected to be same as well.

Fed decision: Wednesday, 19:00, press conference at 19:30. After three consecutive rate cuts, the world’s most powerful central bank is set to hold its fire in the last meeting of 2019. Jerome Powell, Chairman of the Federal Reserve, has recently said that he sees the economy as a “glass more than half full.” However, not all economic indicators have been favorable, with manufacturing still a drag. The Fed’s comments on inflation and employment – responding to the Non-Farm Payrolls – will be of interest, as these are the bank’s mandates. However, the Washington-based institution’s forecast for interest rates

USD
US inflation
Fed decision

  • EURUSD

As could be seen on the chart above that the pair is traded below a strong resistance level that is the downtrend line shown on the chart in red. Therefore, we are bearish as long as the pair is traded below it. Our first target is: 1.0982

Resistance levels: Support levels: Recommended:
▪ 1.1500
▪ 1.1400
▪ 1.1300
▪ 1.0993
▪ 1.0982
▪ 1.0850
We are bearish as long as the pair is traded below the downtrend line.
  • GBPUSD

As could be seen on the chart above that the pair is traded below a strong resistance level that is 1.3300. Therefore, we are bearish as long as the pair is traded below it. Our first target is 1.3100

Resistance levels: Support levels: Recommended:
▪ 1.3400
▪ 1.3350
▪ 1.3300
▪ 1.3100
▪ 1.2900
▪ 1.2850
We are bearish as long as the pair is traded below 1.3300
  • GOLD

The chart above shows that the pair is traded within a bearish channel. We will be waiting for the pair to reach the resistance level of 1480 – 1483 which meets the upside of the channel. If the pair follows this scenario, we can go short targeting the level of 1447 (in case the pair shows up some bearish evidence).

Resistance levels: Support levels: Recommended:
▪ 1510
▪ 1483
▪ 1470
▪ 1465
▪ 1455
We are bearish as long as the pair is traded below the upside of the bearish channel.
  • AUDUSD

As could be seen on the chart above that the pair is traded below a strong resistance level that is the downtrend line. In case the pair shows up bearish evidence below it, we can go short targeting the level of 0.6730 followed by 0.6695. On the other hand, breaking the downtrend line to the upside, can open the door for further upward movements during the week that it might reach the level of 0.7000.

Resistance levels: Support levels: Recommended:
▪ 0.7123
▪ 0.7050
▪ 0.7000
▪ 0.6730
▪ 0.6695
▪ 0.6672
We are bearish as long as the pair is traded below the downtrend line.
  • GBPJPY

The chart above shows that the pair is traded below a strong resistance level that is the downtrend line shown on the chart in red. Therefore, we are bearish as long as the pair is traded below it. Our first target is 138.

Resistance levels: Support levels: Recommended:
▪ 144.50
▪ 144
▪ 143.80
▪ 138.00
▪ 137.50
▪ 137.00
We are bearish as long as the pair is traded below the downtrend line.

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