In today’s live trading session, we went over the US CPI data release, and then we went over the current status of our trades.
This morning the US released it’s Consumer Price Index (CPI) with a result of 0.6% versus a forecast of 0.3%. The CPI measures inflation and typically when the result is greater than the forecast, it is good for the currency. We can see that relate to the US Dollar Index as the pair has held onto support at 93.30. We are currently waiting to see if this support would hold or it would give way to a selloff to 89.00. This will then dictate which direction the majors will go.
Yesterday we entered short for EURCAD as both technical and fundamental analysis support the bias. We are currently in profit and are moments away from hitting take profit 1. We discovered that our pending short for USDCAD is moments away from entry as price attempts to breach last week’s low. We then identified a new trade to take, and that is a possible long for USDJPY. At the moment price is resting below weekly resistance, once we get clearance of this resistance we will be looking to enter long.
In addition to all of the fundamental factors such as economic news and Covid-19, we traders must also be cautious of the 2020 election. Yesterday, Joe Biden chose his VP to be Kamala Harris. This led to reactions in the commodities and the stock market. In the next 90 or so days, the world will get more clarity on the 2020 presidential election and so we advise traders to keep an eye out on the latest political news. As always, be safe and trade responsibly!