Although the Bureau of Labour Statistics released a better than expected US Core PPI, the buck did not manage to make any significant advances against the yellow metal yesterday. The reason for that was a combined support set up by the 55-hour SMA in conjunction with the bottom trend-line of a rising wedge. Accordingly, today the pair is expected to make a breakout from this pattern. The fact that the northern side near the 1,295.00 level is secured by the 55-day SMA indicates on breakout to the bottom. Moreover, this direction is line with trade patterns theory. However, there is need to take into account traders’ reaction on release the US inflation and retail sales data, which might lead to active sell off of the Greenback.
This overview can be used only for informational purposes. Dukascopy SA is not responsible for any losses arising from any investment based on any recommendation, forecast or other information herein contained.