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Lower CPI Weakened the US Dollar

Good morning Traders!

The US dollar was sold off yesterday on the back of a lower than expected CPI reading, which showed that US inflation has slowed down in the months of April.

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The Daily, Weekly and the Monthly charts are all in a confirmed downtrend, and after consolidating for a while above the strong Support level of 17.9 the market has broken through this level, closed below it, and then continued with another push, breaking the Low of the last week candle in the process.

As the market is currently overextended from it’s Moving Averages on all the higher timeframes. I’ll be looking for a pullback to release some of this strong selling pressure and for price action to catch up with it’s averages.

The area that I am eyeing for the pullback is around the 17.9 which is the breakout level, and if and when the market will pullback to around this area, I’ll be looking for signs that the pullback is over, and the market is ready to continue it’s overall longer term trend.

Happy Trading!

Tamar Mehr

Tamar Mehr is a professional trader, neuropsychological trading mentor, FXGlobe Ambassador, and decision-making expert. She’s based in Brisbane, Australia.

Trading Advice Disclaimer:
Our Ambassador’s Daily Picks are not trading advice. These are informational articles covering the events which happened in the market already & scheduled events which are scheduled to happen in the Economic & Earnings Calendar.

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Trading leveraged products such as Forex and CFDs carries a high level of risk thus may not be appropriate and/or suitable for all investors. The investment value can both increase and/or decrease and the investors may lose all their invested capital. The content of this website does not constitute financial or investment advice. Any information herein is of a general nature and does not take into consideration your personal circumstances, investment experience or current financial situation. Under no circumstances shall the Company or affiliated Companies have any liability to any person or entity for any loss or damage in whole or part caused by, resulting from, or relating to any transactions related to leveraged products.

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APLFX (PTY) LTD acts solely as an intermediary in terms of the FAIS Act, rendering only an intermediary service (i.e., no market making is conducted by APLFX (PTY) LTD) in relation to derivative products offered by FS INTERNATIONAL LTD (i.e., the Product Supplier).

By proceeding with opening an account, this will be registered with FS INTERNATIONAL LTD, which is authorised and regulated by the Vanuatu Financial Services Commission (VFSC) with license number 700227. FS INTERNATIONAL LTD falls outside the South African regulatory framework and Vanuatu’s laws and regulations will apply in relation to your account.

APLFX (PTY) LTD is authorised by the Financial Sector Conduct Authority (FSCA) in South Africa as a Financial Service Provider (FSP) with authorisation number 52045.

APLFX (PTY) LTD acts solely as an intermediary in terms of the FAIS Act, rendering only intermediary service (i.e., no market making nor product producer is conducted by APLFX (PTY) LTD) in relation to derivative products through a licensed Product Supplier.

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