Traders Eye Inflation Reports
MaiMarFX | Sep 13, 2021 09:41
Welcome to a new trading week. Traders will likely be eyeing key inflation data from the U.S., U.K. and eurozone this week to shape expectations for monetary policy tightening. The U.S. dollar in the meantime strengthened slightly against other peers, pushing the euro and British pound lower and below crucial support levels.
U.S. inflation is expected to slow down for the first time this year, increasing the chances of a bearish reaction in the greenback. Evidence of slower price growth would warrant the Federal Reserve’s current path for monetary policy, while a higher than forecast inflation reading could generate a bullish reaction in the dollar. The U.S. inflation report is due for release on Tuesday.h3 EUR/USD/h3
The pair held above the 1.18-barrier until this morning but now that the threshold is breached, we could see the euro falling towards 1.1750 and 1.1730 in a next move. On the topside, we look at resistances at 1.1830 and 1.1880 that could attract more sellers. For a bullish breakout, however, we would need to see prices above 1.1910.
As long as the cable holds above 1.3750, we pencil in higher targets between 1.3950-70.
h3 DAX/h3After 15700 broke, the index slid lower towards 15400 but if current support levels seen at 15400 and 15250 hold, we anticipate a bullish move back towards 15900.
Today we went long at 15680 and were able to take a good profit.
Disclaimer: All trading ideas and expressions of opinion made in the articles are the personal opinion and assumption of MaiMarFX traders. They are not meant to be a solicitation or recommendation to buy or sell a specific financial instrument.
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