Russell Shor

FXCM’s USDOLLAR basket spiked on the news before settling, charting a long upper shadow (blue arrow). Notably, the hourly EMAs and the stochastic are in bullish mode (black ellipses). The greenback is showing signs of strength. However, the daily chart on the left shows that the dollar is still trading in its weak area between the lower blue and red bands. Dollar rallies may be targets. This is because US…

EURUSD is trading in its area of strength, between the upper blue and red bands (blue arrow), on its daily chart. Price appreciation is a likelihood the longer it maintains in this position. On the righthand side, the hourly chart also shows bullish signs, with the trend-following EMAs and the stochastic having both crossed positively (black ellipses). Momentum is near the 80+ region (red rectangle) and if it holds, a…

The headline CPI came in at 7.1% YoY, below the forecast of 7.3% YoY and less than last month's 7.7% YoY. The core CPI also moderated to 6% YoY. The consensus was at 6.1% YoY, and last month's print was 6.3%.

FXCM's US30 CFD climbed 2% yesterday. This appreciation moved the index from its weak zone, between the lower blue and red bands, into its neutral region, between the blue bands (green square). On a relative basis, this is a movement of strength.

In this week's podcast, FXCM senior market specialists Nik and Russ discuss central banks' potential pausing. In addition, the two analysts discuss the inflation data, specifically the CPI release, which precedes the Fed's next rate hike by a day. Moreover, the BoE and ECB will hike on Thursday, with all three central banks expected to deliver 50bps. All these and more.

The EURUSD trades in its daily area of strength between the upper blue and red bands (blue arrow). The longer this region is maintained, the greater the likelihood of further appreciation. The market seems to be pricing in strength ahead of Wednesday's Fed release and Thursday's ECB statement.

FXCM's USDOLLAR basket remains subdued in its daily bear channel between the lower blue and red bands (green rectangle). However, this position will apply more downward pressure to the greenback if it maintains.

The merging of teams may already yield favourable repricing. The Goog.us daily chart is trading between the upper blue and red bands in its bullish channel. The hourly EMAs have crossed positively (black ellipse). If the stochastic follows suit (red ellipse) and moves to the 80+ region (blue arrow), an underlying bullish moment will build on the short-term chart

The NAS100 daily chart (left) trades at support (green-shaded horizontal). This zone is around the 11,500 level

The daily gold chart trades between its upper blue and red bands in its bullish channel. The longer it maintains this position, the more bullish the precious metal is. The hourly chart has pulled back to a confluence of price support on the central pivot (green-shaded horizontal). To test a price reaction, we want to see both the hourly EMAs and stochastic turn positive. If this happens and the hourly…

Average hourly earnings surprised to the upside, printing at 0.6% MoM - double the 0.3% MoM expected. This has raised the spectre of a wage inflation spiral. Markets are edgy and are reacting to bullish and bearish news. Upside surprises continued with ISM Services PMI and factory orders beating forecast. The ECB has indicated a minimum of 50bps for its hike. Join FXCM Senior Market Specialists Russ and Nik as…