The weekly rally of the US Dollar against a basket of 6 other major currencies was suspended yesterday, during the american trading session. This took place after the US Department of Labor released poor stats. The US Dollar instantly started going down from 80.90. Today, the USD index is trading close to 80.50, Market Leader reports.
It seems like the market is waiting for the US consumer inflation report, scheduled for today. This is going to happen n a couple of hours.
April's consumer inflation figures indicated a 0,6% increase after a 0,5% gain in March. The data turned out to be 0,2% better than expected. At the sam time the producer price index indicated a 2,1% increase as opposed to the previous reporting period. These are the best figures in 2 years. Economists assume that today's report is likely to show a 0,1% decline.
USD Index
Masterforex-V Academy analyzed the H1 chart of the USD index to find out that the bias is still bullish. Still, the price is retracing from the local high at 80,97. This is a bearish reaction of a bigger scale level. So far, the move still fits within the scope of correction against the 80.22-80.97 bullish move.
The mentioned bearish move keeps on forming wave 3 from 80.90, which is already 200% Fibo. At the same time, the price has already reached a major level of support at 80.50 and came close to the MF sloping channel. So, the price may well rebound from the area and resume the rally.
Resistance: 80.63 + 80.88, 80.94 + 80.97 + 81.02.
Support: 80.50 + 80.38 + 80.22 + 80.18.
