US inflation: Wednesday, 12:30. Fed Chair Jerome Powell insisted that recent weakness in inflation has been transitory — and the rise of Core CPI to 2.1% y/y in April vindicates his words. However, the data for May may pose another challenge for the Fed, which convenes for a critical meeting in the following week. Headline CPI rose by 0.3% m/m in April and Core CPI by 0.1%.
USD
US inflation
- EURUSD
As could be seen on the chart above that the pair managed to break the downtrend line shown on the chart in red. This simply opens the door for further upward movement during the week that it might reach the level of 1.1419 as first target. This is conditioned by the continuation of trading above the broken downtrend line.
| Resistance levels: | Support levels: | Recommended: |
| ▪ 1.21 ▪ 1.1419 ▪ — |
▪ – ▪ – ▪ 1.1118 |
We are bullish as long as the pair is traded above the broken downtrend line. |
- GBPUSD
The daily timeframe shows that the pair is traded above a strong support level that is 1.2550. Therefore, we are bullish as long as the pair is traded above it. Our first target is 1.30.
| Resistance levels: | Support levels: | Recommended: |
| ▪ 1.36 ▪ 1.3310 ▪ 1.33 |
▪ – ▪ 1.2550 ▪ 1.2500 |
We are bullish as long as the pair is traded above the support level of 1.2500 |
- GOLD
The chart above shows that the pair is traded below a strong resistance level that is 1350. Therefore, we are bearish as long as the pair is traded below it. Our first target is 1310.
| Resistance levels: | Support levels: | Recommended: |
| ▪ 1350 ▪ 1365 |
▪ 1245 ▪ 1260 ▪ 1265 |
We are bearish as long as the pair is traded below the level of 1350. |
- AUDUSD
As could be seen on the chart above that the pair is traded below a strong resistance level that is 0.7000 therefore, we are bearish as long as the pair is traded below it. Our first target is 0.6850.
| Resistance levels: | Support levels: | Recommended: |
| ▪ 0.7550 ▪ 0.7600 ▪ 0.7000 |
▪ 0.6788 ▪ – ▪ – |
We are bearish as long as the pair is traded below the level of 0.7000 |
- GBPJPY
The chart above shows that the pair is about to reach a strong support level that could be found at 134. We will be looking for some bullish evidence around this area for an expected movement to the upside. We will update the report in case there is any change.
| Resistance levels: | Support levels: | Recommended: |
| ▪ 156 ▪ 155 ▪ 141 |
▪ 134 ▪ 133 ▪ 132 |
Waiting for some bullish evidence to show up. |
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