Dollar bearish ahead of the CPI data
Ahead of the CPI data from the US, we do have a two sell signal attached to the American Dollar. First one is direct and its sell on the USDJPY and the second one is indirect and it’s a buy signal on the Gold (driven mostly by the weaker USD).
Yesterday, USDJPY broke super important support on the 108.3 and today, the price is making lower lows and lower highs, which is a confirmation of the bearish intentions and decreases the chance for a false breakout.
Gold defended the 1307 USD/oz support along with the 38,2% Fibonacci. We also broke the upper line of the wedge formation. All that is positive and creates a mid-term buying opportunity.
SP500 is still doing good. Major uptrend lines and Fibonacci were defended. We are very close to forming a full V shape reversal, which should not be a surprise as American indices did that many times before. Why should they not do that again?
This article is written by Tomasz Wisniewski, a senior analyst at Alpari Research & Analysis