After a poor CPI report, Dollar bulls seem unfazed as they look to drive prices higher. As a result, EURUSD looks to head lower after creating a new lower high.
Today’s CPI report came out worse than forecasted as the result was 0.3% versus the forecast of 0.4%. Traders saw the Dollar drop momentarily to 92.500. Since then, bulls have responded with two hammer candles on the 4hr time frame. This points to a rally back to 92.705 which is likely based on the recent consolidation.
With a bullish Dollar expected in the short-term, traders can expect EURUSD prices to head lower. Price has already started to fall after creating a new lower high during the New York session. The next target for the price should be this week’s low near 1.17750. If the Dollar can remain bullish this week, the price can dive to 1.17350.
Despite the poor inflation data (Core CPI/CPI), the Dollar seems to be destined to resume this past quarter’s uptrend. Traders could see the majors fall as we finish summer as well as commodities like Gold.
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