Headlines the Economic Calendar on Wednesday
UK Consumer Price Index: The UK CPI Inflation will be an important release for the Sterling. The UK CPI inflation is expected to ease to 1.6% from 1.7% year-on-year. A higher than expected reading should be taken as positive for the British pound.
US CPI Inflation: We will closely watch the US CPI inflation figures today, which should lend further support to the notion that inflation has returned to the Fed’s target.
US Consumer prices are expected to have risen 0.3% last month and 1.7% over the prior year, according to estimates. Excluding the cost of food and fuel, core inflation is projected to stay at 2.4% on a year-over-year basis.
Fed Chair Powell Testifies: Investors will focus Fed Chair Powell's Testify on the economy before the Joint Economic Committee, in Washington DC. Powell is expected to reiterate that plans for further easing are now on hold after the Fed cut rates last month for the third time in as many meetings.
The Fed has cut rates largely to protect the economy from a damaging trade war with China that's curbed the U.S. and global growth in their last meeting. Powell's comments will be watched closely by traders.
Technical Analysis:
EUR/USD: Keep your eye on the US CPI Inflation and Fed Chair Powell Testifies today. The EUR/USD pair is now trading above the 1.1007 main support level. As long as the price sustains above 1.1007 on a four hourly basis, we will follow the resistance level at 1.1052 again. On the other hand, if the price breaks down below 1.1007, the next support level will be at 1.0965.
Support: 1.1007 - 1.0965 - 1.0930
Resistance: 1.1052 - 1.1114 - 1.1165
GBP/USD: We will closely watch the UK CPI Inflation Data today. The GBP/USD pair is currently trading above the main support level of 1.2838. As long as the pair stays above 1.2838 on a four hourly basis, we will see the resistance level at 1.2947. Otherwise, if the pair drops below 1.2838, we will watch the support level at 1.2768.
Support : 1.2838 - 1.2768 - 1.2671
Resistance: 1.2947 - 1.3046 - 1.3136
GOLD: The Gold Price showed an upward movement above the main support level of 1453. Now, focus on the daily resistance level of 1466. In order for the rise to gain more momentum, it needs to break out and stay above 1466 on a daily basis. In this case, the next resistance level can be seen at 1478. Otherwise, the key support level can be found at 1453 again.
Support: 1453 - 1440 - 1421
Resistance: 1466 - 1478 - 1492
USD/NZD: The New Zealand Dollar rose versus the US Dollar in the Asian Trading Session after the Reserve Bank of New Zealand left interest rates unchanged.
The NZD/USD pair is now trading above the main support level of 0.6386. As long as the price stays above 0.6386 on a four hourly basis, the rise may continue and the daily resistance level can be seen at 0.6425. On the other hand, if the price falls below 0.6386, the next support level will be at 0.6337.
Support: 0.6386 - 0.6337
Resistance: 0.6425 - 0.6488 - 0.6543
USD/TRY: Turkey’s Recep Tayyip Erdogan will meet Donald Trump today, the Turkish presidency said Tuesday, amid heightened tensions between the two countries.
Ahead of the Erdogan-Trump Meeting, the USD/TRY pair is now the 5.7679 daily support level. If the pair stays above 5.7679 on a daily basis, the rise may gain more momentum and we will see the resistance level at 5.9763. On the other hand, if the pair breaks down 5.7679, the next support levels will be at 5.6027.
Support: 5. 7679 - 5.6027 - 5.4538
Resistance: 5.9763 - 6.1475 - 6.3364
USD/ZAR: The USD/ZAR pair found buyers from the 14.8380 key support level. If the rise continues above 14.8380, the resistance level can be seen at 15.1896. In contrast, if the pair falls below 14.8380, we will see the next support level at 14.5625.
Support: 14.8380 - 14.5625 - 14.1865
Resistance: 15.1896 - 15.4801