Traders are eagerly awaiting the result of today’s PCE Price Index Data update early in the New York session. It is well touted as the Fed’s favourite inflation indicator and with the FOMC still laser-focused on getting inflation back to its target level, today’s data print should see volatility and trading opportunities. The Euro is the dollar’s biggest trading pair in the market, and it is setting up nicely for some good moves in today’s trading sessions. The expectation is for a 0.3% month-on-month increase and anything significantly off that print should see some big moves in the market.
It has recently peaked just under 1.0900 for the third time and traders will be targeting that level if today’s data shows slowing inflation in the states. Short-term trendline resistance on the hourly chart also comes in around that level with further resistance just 50 pips further north on the longer-term Daily charts. Initial support on the hourly chart now comes in just under the 1.0700 level and this could come under threat if we see a print substantially higher than expected.
Resistance 2 – 1.0950 – Long-term Trendline Resistance
Resistance 1 – 1.0900 – Short-term Trendline Resistance
Support 1 – 1.0685 – Short-term Trendline Support
Support 2 – 1.0599 – 2024 Low
