EUR/USD Fibo Bounce into Resistance - CPI on Deck
I posted about a Fibonacci level in-play on EUR/USD yesterday and that's since led to a spirited bounce.
Yesterday's daily bar finished as a dragonfly doji after catching a bounce from the 1.0200 level, and today that's been continuation with the pair testing above the 1.0300 level following this morning's release of PPI data.
Of course, this is just setting the stage for the big one with tomorrow's release of CPI, with headline expected to rise to 2.9% against last month's 2.7% reading.
For next resistance in the pair, I'm looking to 1.0333, and if tomorrow's CPI release comes out weak, I think that gives more push for USD pullbacks that could also show alongside strength in stocks. But in EUR/USD, that deeper retracement in DXY could allow for re-test of prior support-turned-resistance at 1.0453. - js
Yesterday's daily bar finished as a dragonfly doji after catching a bounce from the 1.0200 level, and today that's been continuation with the pair testing above the 1.0300 level following this morning's release of PPI data.
Of course, this is just setting the stage for the big one with tomorrow's release of CPI, with headline expected to rise to 2.9% against last month's 2.7% reading.
For next resistance in the pair, I'm looking to 1.0333, and if tomorrow's CPI release comes out weak, I think that gives more push for USD pullbacks that could also show alongside strength in stocks. But in EUR/USD, that deeper retracement in DXY could allow for re-test of prior support-turned-resistance at 1.0453. - js
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