Intraday Forex Friday, November 12 (EURUSD, USDJPY, etc). Dollar soars high as it retains its post-inflation strength.


Hi everyone. This observation is made around 06:45 UTC today, with 30 minutes time frames. The Resistance and Support Line were constructed according to Fibonacci retrenchment. Any discussion is welcomed.

The dollar is headed for a weekly gains against other currencies on Friday, as it retains its post-inflation strength. The sharp rise in inflation prompted investors to boost bets that the Fed will raise interest rates sooner than expected.
Gold also headed for weekly gains, while oil to end the week roughly unchanged.

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  • The dollar pushed the euro back to a 16-month low, now traded at $1.14416 and headed for more than 1% decline for the week.​
  • The dollar retains its post-inflation strength. The dollar is supported on speculation the Fed may be prompted to raise interest rates earlier than previously thought after Wednesday’s U.S. Oct CPI data showed prices climbing at their fastest pace since 1990.​
  • The dollar also extend its gains on increased safe-haven demand after the U.S. warned the European Union of a potential invasion of Ukraine by Russia.​
  • The EUR/USD price action has continued the trajectory albeit at a more moderate pace. Momentum indicators suggest that there is further downside potential, although are fast approaching oversold conditions.​
  • Traders will be watching inflation readings from a University of Michigan survey, along with JOLTS job openings data later in the global day. European Central Bank chief economist Philip Lane also speaks later today.​
Important Levels to Watch for:​
  • Resistance line of 1.15054 and 1.15521.​
  • Support line of 1.14120 and 1.13653.​

  • The Japanese yen traded at 114.239 per dollar, struggling to recover after weakening from below 113.5 against the greenback earlier in the week.​
  • The dollar rose as high as 114.298 yen early on Friday, a one-week peak while on track to 0.60% gains for the week.​
  • Central bank divergence between the Federal Reserve and the BoJ weighed on the yen, with the Fed expected to tighten monetary policy well before the BoJ.​
  • The dollar also supported higher as soaring T-note yields weighed on the yen.​
  • The USD/JPY will make another test of the 114.37 price ceiling as bullish sentiment has been on the rise. Buying activity however has been waning in recent trading which casts doubt that there is enough conviction to drive the break. The current consolidation channel is likely to remain intact.​
Important Levels to Watch for Today:​
  • Resistance line of 114.371 and 114.748.​
  • Support line of 113.617 and 113.240.​

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