July 11, 2024 at 02:22PM
The US CPI data came in lower than expected, and that has led to a fall in the US dollar, and a fall in US yields.
The EURUSD has broken higher and moved above a swing area between 1.0875 and 1.0887. Also at 1.0887 is a downward sloping trendline on the 4-hour chart connecting highs from March and June. Close risk for buyers is now a move below 1.0875. Buyers are in control with the high from June at 1.09153 the next target to get to and through.
The USDJPY moved lower and in the process dipped below the 200 bar moving Arizona for our chart at 158.625, but held above the 50% of the last trend move up from the June low to the July high at 158.233. Getting below those levels and staying below those levels would add to the bearish bias today.
The GBPUSD moved sharply higher in trades at the highest level since July after breaking above the 2024 high at 1.2893 (a risk level now for buyers). Other support will be eyed between 1.2908 and 1.29176. That area represents the 38.2-50% retracement of the move up from the low just prior to the release of the data (the last trend move higher). Traders looking to jump on the breakout move, should welcome buying against that area at 38.2% to 50% off the high for the day. Conversely, move below and something is wonky with the buyers. They don’t love the market and may look to probe lower instead.
This article was written by Greg Michalowski at www.forexlive.com.
