CPI TRADE SETUP

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Here's a CPI-related gold price analysis based on your 1-hour chart and current price action:


Chart Context

Instrument: Gold (CFDs in USD)

Timeframe: 1H

Current Price: $3,254.93

Event: Upcoming or recent CPI data release (Consumer Price Index – high-impact economic event)



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Technical Overview

1. Key Levels

Resistance Zone: $3,280 – $3,300
(Previous strong support that turned into resistance)

Support Zone: $3,200 – $3,220
(Recent bottom and sharp bounce zone)

Mid-Level Reaction: $3,255 – Price is currently reacting here.


2. Price Action

After a sharp sell-off, price bounced from ~$3,200 and is now consolidating around $3,255.

Market is likely awaiting CPI data for direction.

Consolidation near a key psychological level suggests breakout potential.



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CPI-Based Trading Scenarios

Scenario A: CPI Higher Than Expected (Hawkish)

Expected Move: USD strengthens → Gold weakens

Trade Idea:

Entry: Sell on breakdown below $3,245

Target: $3,220 → $3,200

Stop Loss: $3,265

Bias: Bearish



Scenario B: CPI Lower Than Expected (Dovish)

Expected Move: USD weakens → Gold strengthens

Trade Idea:

Entry: Buy breakout above $3,270

Target: $3,290 → $3,300

Stop Loss: $3,255

Bias: Bullish




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Risk Management

Use tight SL due to volatility during CPI news.

Avoid trading right at release – wait for 5–15 minutes after the candle settles.

Trade with your own risk ‼️‼️



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Disclaimer

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