Sive Morten
Special Consultant to the FPA
- Messages
- 18,664
Morning everybody,
So, CPI numbers were a bit tricky, because they are under expectations but still has shown 0.2% rising on MoM basis, and i wonder, could it be the first signs of inflation jump that we expect in Aug-Sep.
On daily chart picture looks bearish, as market shows too weak reaction on support area. Flag shape and inner ab-cd performance also stand in favor of bearish scenario:
On 4H chart market has formed upside AB-CD action that we've discussed, but it failed to stay above 1.1040 area which was vital for bullish turn. We've got bearish butterfly instead and huge bearish engulfing performance if you combine 4 yesterday's bars here. Minor grabber is forming as well, as you could see.
It means that we could start thinking about short entry with initial stop above the butterfly. Today we get PPI and Michigan data, so, keep an eye on Fib levels on 1H chart that might be used for short position taking. You could split entry or could try to catch precise level. As we've made decision about direction, you could use your favorite way of position taking.
So, CPI numbers were a bit tricky, because they are under expectations but still has shown 0.2% rising on MoM basis, and i wonder, could it be the first signs of inflation jump that we expect in Aug-Sep.
On daily chart picture looks bearish, as market shows too weak reaction on support area. Flag shape and inner ab-cd performance also stand in favor of bearish scenario:
On 4H chart market has formed upside AB-CD action that we've discussed, but it failed to stay above 1.1040 area which was vital for bullish turn. We've got bearish butterfly instead and huge bearish engulfing performance if you combine 4 yesterday's bars here. Minor grabber is forming as well, as you could see.
It means that we could start thinking about short entry with initial stop above the butterfly. Today we get PPI and Michigan data, so, keep an eye on Fib levels on 1H chart that might be used for short position taking. You could split entry or could try to catch precise level. As we've made decision about direction, you could use your favorite way of position taking.
