USD strikes decrease after tamer CPI knowledge. What are the technicals saying.

The US CPI got here out decrease than expectations and that has helped to push the USD decrease.

EURUSD: The EURUSD has prolonged above a swing space between 1.1089 to 1.1106 however has the highs from 2025 at 1.11448 as the following goal. Staying above 1.1089 would maintain the patrons in agency management, however getting above the excessive for the yr (excessive going again to October 2024) can be wanted to extend the bullish bias and have merchants wanting towards 1.1213 excessive for 2024.

USDJPY: The USDJPY is buying and selling at a brand new low for the day, however importantly, it nonetheless holds above a key assist zone between 144.45 and 144.56 — a swing space marked by prior response lows (highlighted by purple circles on the chart). A break beneath that area would open the door for a take a look at of the 2024 low at 143.99.

Value motion in latest weeks has been uneven and directional strikes have lacked lasting momentum. Regardless of this, the highest of the latest vary (the excessive of the purple field) has remained persistently beneath the 100- and 200-bar transferring averages on the Four-hour chart. That technical ceiling has helped reinforce the bearish bias and saved sellers in management total.

That mentioned, the broader setting stays risky, and the clear up-and-down swings could invite dip patrons close to key assist zones like 144.45–144.56. Whereas sellers have the sting beneath the transferring averages, the layered assist beneath retains the short-term image combined — particularly for merchants in search of low-risk lengthy entries.

GBPUSD: The GBPUSD has seen each upside and draw back breakouts in latest weeks on the Four-hour chart, however every transfer has met follow-through after which reversal, leaving value motion more and more rangebound. The pair is presently buying and selling inside a well-defined consolidation zone (the “Pink Field”) between 1.28608 and 1.30139.

At the moment, the value moved again inside this vary and tried to push above the 100-bar transferring common (presently at 1.29247), however is presently fluctuating above and beneath it. A agency break above would shift the main target to the following resistance ranges — the swing space close to 1.2988 and the March 20 excessive at 1.30139.

Conversely, failure to remain above the 100-bar MA retains the stress on the draw back. In that case, merchants will search for a transfer again towards the underside of the vary and key assist at 1.28608.

Within the greater image, GBPUSD stays caught in consolidation mode. A sustained break exterior of the Pink Field — both above 1.30139 or beneath 1.28608 — is required to tip the longer-term bias.

This text was written by Emma Wang at www.ubaidahsan.com.



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