Good morning Traders!
The US dollar was sold off yesterday on the back of a lower than expected CPI reading, which showed that US inflation has slowed down in the months of April.
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The Daily, Weekly and the Monthly charts are all in a confirmed downtrend, and after consolidating for a while above the strong Support level of 17.9 the market has broken through this level, closed below it, and then continued with another push, breaking the Low of the last week candle in the process.
As the market is currently overextended from it’s Moving Averages on all the higher timeframes. I’ll be looking for a pullback to release some of this strong selling pressure and for price action to catch up with it’s averages.
The area that I am eyeing for the pullback is around the 17.9 which is the breakout level, and if and when the market will pullback to around this area, I’ll be looking for signs that the pullback is over, and the market is ready to continue it’s overall longer term trend.
Happy Trading!
