A1 Trading Company

Ticker tape by TradingView

August 9, 2022

Trade These Pairs Before CPI

Frank Cabibi

Consumer Price Index numbers will come out tomorrow with the anticipation of a slowdown in inflation. This index takes all goods and services purchased by consumers and measures their prices against the previous month. Investors will get an idea of whether or not the Fed is staying the course, too aggressive or too loose. Here's why you should trade these pairs before tomorrow.

AUD/USD

trade these pairs

The RBA fears slowing the economy should they continue to raise their rates. Unlike the US, Australia is not showing positive growth in jobs or output which is hinting towards their central bank taking a less hawkish approach and lessening the rate hikes. Investors are looking towards weakness in the buck and are looking for further downside on this pair.

AU just came back up to test a falling trend line on the 4H which it couldn't break above. The pair is also in a fib resistance zone while forming lower highs. Price may start to move downward towards the 0.69125 level where there are a couple bottoms.

GBP/USD

trade these pairs

After a handful events in the UK, the value of the pound is very much up in the air. Uncertainty clouds investors' grim outlook on the economy and currency. British GDP numbers are expected to come out lower and even negative, which compared to last month, was 0.50%. This will also give us an indication of whether or not the BoE will keep hiking as much as they have, or if they'll take their foot off the pedal for a while.

Should lower GDP numbers come in for GBP, we can expect the pair to turn lower. On the 1D timeframe, price is showing another day of rejection from the highs of the day. Price may continue lower to test the falling trend line. We can see a move as low as the bottom at 1.17631.

USD/JPY

trade these pairs

UJ has been a volatile and unpredictable pair for the most part this year. Long term, we might be able to expect a stronger USD over the yen although both currencies are considered risk-off. Latest NFP numbers suggest that the Fed can keep hiking rates. And tomorrow's CPI might further indicate that argument's validity.

The pair has not really moved this week but has stayed just above a previous resistance level around 134.597. A move down could lead price to hit the rising trend line on the 1D timeframe, while an upward surge could take the pair all the way to the highs of 138.700s.

A1 Edgefinder

Smart Money Tracker
See where big money is flowing with the A1 Edgefinder's smart money tracker! With one click, see where the biggest money flows are entering and exiting through COT data.

10% off code: 'READER'

GET ACCESS NOW

VIP discord

Trade Alerts, Strategies, Chatrooms & more!

10% off code: 'READER'

LEARN MORE
What To Take Away From Powell's Remarks

Today, Fed chairman Jerome Powell spoke on the labor market and inflation. While we don't know what the future holds for the equities and currency market, we can derive certain conclusions from investors' interpretations. Here are some powerful takeaways from Powell's remarks this afternoon. Key takeaways Market Impact This caused the dollar and equities to […]

Read More
What To Expect From Today's FOMC

Today at 2:00 pm EST, the Fed will announce their latest interest rate decision. Estimates suggest a smaller hike of 25 basis points this time around. Here are some things to consider before the FOMC decision later today: The Fed has struggled to tighten their grip on inflation without causing too much disturbance in the […]

Read More
The Art of Not Trading

With the holiday season lingering on and a new year on the cusp of arrival, traders may glance at the calendar and notice there is not much economic news to anticipate on Friday to cap off a light week. In situations like these where there can be lulls in bullish and bearish momentum due to […]

Read More
DISCLAIMER: All comments made by TraderNick’s Forex Group, LLC are for educational and informational purposes only. All comments should not be construed as investment advice regarding the purchase or sale of any securities or financial instrument of any kind. Please consult with your financial adviser before making an investment decision regarding any securities or financial instruments mentioned by TraderNick’s Forex Group, LLC. TraderNick’s Forex Group, LLC assumes no responsibility for your trading and investment results. All information on any of the platforms utilized by TraderNick’s Forex Group, LLC was obtained from sources believed to be reliable, but we do not warrant its completeness or accuracy, or warrant any results from the use of the information. TraderNick’s Forex Group, LLC, its employees, representatives, and affiliated individuals may have a position or effect transactions in the securities and financial instruments herein and or otherwise employ trading strategies that may be consistent or inconsistent with the provided strategies. Trading of any type involves very high risk and may not be suitable for all investors. TraderNick’s Forex Group, LLC, its subsidiaries and all affiliated individuals assume no responsibility for your trading and investment result. Read our full disclaimer here
Home
Edgefinder
VIP
Menu
homesmartphonelaptopmenu linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram