Kickstart the FX trading day with a technical look after the CPI data

EURUSD Summary

The EURUSD failed to break below 1.0601 (2024 lows) for the second time, bouncing back to 1.06428.

Key Levels:

Resistance:

• 1.0649 (May 1 low)

• 1.0665-1.0670 (June triple bottom

Support:

• 1.0600. The old low for the year from APril

• The low from yesterday and today near 1.05926

• Lower at 1.0483-1.0533 (swing area)

Outlook:

Buyers need to break resistance levels to gain momentum, otherwise sellers remain in control

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USDJPY Summary

The USDJPY reached 155.23, slightly above the 155.21 swing area resistance, before pulling back.

Key Levels:

Resistance:

• 155.21-23 (swing area)

Support:

• 154.54 (short-term support). The current price is breaking below that level. Stay below keeps the sellers in play with work to do

• 153.88 (July 31, Oct 28-29 swing highs)

• 153.397 (61.8% retracement of July’s downtrend)

Outlook:

Buyers remain in control unless the price breaks and stays below 154.54. On the topside, a break above 155.21-23 could fuel further upside momentum, while a break below 154.54 may lead to further downside.

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GBPUSD Summary

The GBPUSD bounced off the 61.8% retracement level (1.37322) twice, suggesting buyer support.

Key Levels:

Resistance:

• 1.2800 (near-term resistance)

• 1.2818 (200-day MA)

• 1.28329-1.28719 (swing area and 50% midpoint)

Support:

• 1.27322 (61.8% retracement) Stay above gives the buyers some hope. Move below is more bearish.

• 1.26657-1.2685 (swing area)

• 1.26137 (June/July lows)

Outlook:

Buyers are pausing at the 61.8% retracement. The price has moved above 1.27529 after CPI but has to stay above to give the buyers some hope. Breaking above 1.2800 could spark further upside, while breaking below 1.26657 may lead to a restart of the downside momentum

This article was written by Greg Michalowski at www.forexlive.com.