The AUDUSD halted its losses this week after the sharp sell-off last week, printed a temporary support at 0.8756 levels, Today after midnight, the Consumer Price Index (QoQ) (Q4) will be published at 00: 30 GMT. Jan 22.
The Consumer Price Index (CPI) measures the change in the price of goods and services from the perspective of the consumer. It is a key way to measure changes in purchasing trends and inflation.
First, let’s highlight support and resistance levels:
On the daily chart : 0.8585 , 0.8690 , 0.8915 (Critical) , 0.8970
On the 4 hour chart: the pair seeks for a direction: we have bullish divergence with support at 0.8756, we also have bearish divergence with resistance at 0.8837 levels ?!!
How Consumer Price Index will affect the AUDUSD ?!!
Last read was 1.2% , expectations are 0.5% ?!!
In general, A high reading is seen as positive (or bullish) for the AUD, while a low reading is seen as negative (or Bearish), but let’s see how forecast would affect the AUDUSD :
- A reading within expectations 0.5% will bring consolidations with risk to the downside, If seen, short below 0.8837 levels?
- A reading above exceptions 0.5% but below 1.2% will bring small gains, If seen, the pair would challenge 0.8837, If 0.8837 fails, 0.8915 will provide strong resistance and bring resumption ?!!
- A reading above expectations and above 1.2% is likely to take out 0.8837 levels and challenge the main resistance 0.8915 ?!
- A reading below expectations may expose support at 0.8756 and open 0.8690/0.8585 levels.
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