Greetings and good morning to all mates, visitors, and pioneers of the forum. Hopefully, you all will be fine and doing well in trading. The US Dollar Index was little changed at 91.614 in early Asian trade Thursday, holding at monthly lows following the release of monthly US CPI data in the previous session. While the inflation report showed price pressures heating up across the US, markets seemed to largely overlook this due to the ‘transient’ narrative spun by FOMC officials in recent weeks.
Today's news events
Today is a very important day for trading because today there are four high-impact news available for the USD index and AUD currency. The USD index news will be announced at the end of the day at 5:30. (Core Retail Sales and Retail Sales). Therefore, at the time of their release, we recommended trading as carefully as possible or exiting the market to avoid a sharp price reversal.
On the daily time frame, we can see that the pair is trading higher. It has recorded almost 300 pips of increase during this half of the month, but last night the increase was again blocked by the strong resistance 1.1990.
However, the week of negotiations is not over yet. Therefore, the situation may change. I still expect quotes to fall and keep my positions open. According to the trading chart, we can see the resistance formed near yesterday's high and two support levels, around 1.1860 and 1.1810. Unfortunately, the price is unlikely to reach the 1.1780 level today. Such a significant intraday movement is impossible, as there are no strong drivers that can have an impact on the pair's dynamics. Its possible subsequent movement is shown schematically on the four-hour chart.
If we pay attention to the 1H chart the market is bullish The market will rise above this level 1.3766 Current price is at 1.3788 The market will not drop from this level, the market will go up Touch the level this is 1.3838 And there is also fundamental news today, high_impact this will also affect the market USD Index. Therefore, at the time of their release, we recommended trading as carefully as possible or exit the market in order to avoid a sharp price reversal.
Oil is still consolidating at around 63.00 without any particular direction, it is now trading towards the 64.05 bullish edges. If the price exceeds this range upwards, the market may grow to 65.50; turn to the negative side, resume trading downwards to complete this wave at 60.00, and then form another upward structure, with the target at 66.00. I think this is a market that will continue to try to grind higher, reaching towards the $66 level above. At that point, we have seen a lot of selling, so it will be interesting to see how that plays out.