{"id":10095,"date":"2022-10-17T07:02:15","date_gmt":"2022-10-17T07:02:15","guid":{"rendered":"https:\/\/mdr.foobrdigital.com\/?p=10095"},"modified":"2022-10-17T07:02:15","modified_gmt":"2022-10-17T07:02:15","slug":"forex-watchlist-usd-has-room-for-pullback-ahead-of-the-u-s-cpi-release","status":"publish","type":"post","link":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/2022\/10\/17\/forex-watchlist-usd-has-room-for-pullback-ahead-of-the-u-s-cpi-release\/","title":{"rendered":"Forex Watchlist: USD Has Room for Pullback Ahead of the U.S. CPI Release"},"content":{"rendered":"\n<p>Think you\u2019re ready for\u00a0<strong>tomorrow\u2019s\u00a0U.S. CPI report<\/strong>?<\/p>\n\n\n\n<p>Not before you see where the U.S. dollar index is trading ahead of the release!<\/p>\n\n\n\n<p>See, the U.S. dollar has been in an observable\u00a0uptrend\u00a0since the start of the year but it wasn\u2019t until early August when price patterns started showing an\u00a0ascending channel.<\/p>\n\n\n\n<p>On a technical basis, the dollar has room for a bit of retracement.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\">U.S. Dollar Index (DXY): 4-Hour<\/h2>\n\n\n\n<p><a href=\"https:\/\/bpcdn.co\/images\/2022\/10\/12023900\/DXY-1.png\"><\/a><\/p>\n\n\n\n<p id=\"caption-attachment-232105\">U.S. Dollar Index (DXY) 4-Hour Forex Chart<\/p>\n\n\n\n<p>DXY is trading between 113.00 and 114.00, which is pretty close to the top of the ascending channel pattern.Not only that, but there\u2019s also a bit of a\u00a0bearish divergence\u00a0on the 4-hour chart!<\/p>\n\n\n\n<p>But WILL the dollar lose pips across the board this week?<\/p>\n\n\n\n<p>One catalyst would be profit-taking ahead of the U.S. CPI release.<\/p>\n\n\n\n<p>Word around is that today\u2019s annualized\u00a0producer price index\u00a0and tomorrow\u2019s\u00a0consumer price numbers\u00a0will\u00a0reflect slight slowdowns from August\u2019s growth rates.<\/p>\n\n\n\n<p>Those who believe that slightly slower price growth figures would convince the Fed to slow down its interest rate hikes may start selling USD in favor of \u201criskier\u201d bets like GBP and comdolls.<\/p>\n\n\n\n<p>Of course, trends will remain traders\u2019 friends until they bend and the dollar\u2019s uptrend is no exception.<\/p>\n\n\n\n<p>Unless today\u2019s FOMC meeting minutes release opens the door to easing the pedal from the metal, then Fed members will need at least a couple months\u2019 worth of lower consumer price data before they vote for lower (or no) interest rate hikes.<\/p>\n\n\n\n<p>Look out for buying pressure near 112.30, which lines up with the mid-channel support and is not far from the 4-hour chart\u2019s\u00a0100 SMA.<\/p>\n\n\n\n<p>If there\u2019s enough selling, then you can also look at the 111.00 \u2013 111.20\u00a0support zone. As you can see, it\u2019s closer to the bottom of the channel and the 200 SMA on the chart.<\/p>\n\n\n\n<p>Good luck with your dollar trades, my dudes!<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Think you\u2019re ready for\u00a0tomorrow\u2019s\u00a0U.S. CPI report? Not before you see where the U.S. dollar index is trading ahead of the release! See, the U.S. dollar has been in an observable\u00a0uptrend\u00a0since the start of the year but it wasn\u2019t until early August when price patterns started showing an\u00a0ascending channel. On a technical basis, the dollar has [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[309],"tags":[],"_links":{"self":[{"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/posts\/10095"}],"collection":[{"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/comments?post=10095"}],"version-history":[{"count":0,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/posts\/10095\/revisions"}],"wp:attachment":[{"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/media?parent=10095"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/categories?post=10095"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mudassirbackup.infinitycodestudio.com\/index.php\/wp-json\/wp\/v2\/tags?post=10095"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}