Source: PaxForex Premium Analytics Portal, Fundamental Insight
The US CPI for August is predicted to increase by 0.2% monthly and by 2.5% annualized. Forex traders can compare this to the US CPI for July, which expanded by 0.2% monthly and 2.9% annualized. The US Core CPI for August is predicted to rise by 0.2% monthly and by 3.2% annualized. Forex traders can compare this to the US Core CPI for July, which increased by 0.2% monthly and 3.2% annualized.
US Crude Oil Inventories Change for the week ending September 6th are predicted to increase by 0.900M. Traders can compare this to US Crude Oil Inventories Change for the week ending August 30th, which plunged by 6.873M.
Today’s CPI and tomorrow’s PPI will determine price action before the US Fed is expected to cut interest rates for the first time after pausing its tightening cycle. Markets expect a 25 basis point reduction, but a 50 basis point cut is on the table. Traders should expect a volatility spike after the release of the CPI and PPI.
The forecast for the Dow Jones 30 remains bearish, with this equity index trading below its downward-shifting Tenkan-sen and above its upward-shifting flat Kijun-sen. The Senkou Span A and the Senkou Span B of the Ichimoku Kinko Hyo Cloud have flatlined. It may begin to contract to narrow the Ichimoku Kinko Hyo Cloud, a bearish development. Traders should also monitor the CCI following a breakout from extreme oversold territory after recording a higher low but with fading upward momentum. This technical indicator could break down below -100 and start the next leg lower. Can bears maintain control over the Dow Jones 30 and force price action into its horizontal support area?Subscribe to the PaxForex Daily Fundamental Analysis and earn over 5,000 pips per month.
Should price action for the Dow Jones 30 Index remain inside the or breakdown below the 40,415 to 40,735 zone, PaxForex recommends the following trade setup:
- Timeframe: D1
- Recommendation: Short Position
- Entry Level: Short Position @ 40.600
- Take Profit Zone: 39.335 – 39.600
- Stop Loss Level: 41.090
Should price action for the Dow Jones 30 Index break out above 40,735, PaxForex recommends the following trade setup:
- Timeframe: D1
- Recommendation: Long Position
- Entry Level: Long Position @ 41.090
- Take Profit Zone: 41.290 – 41.590
- Stop Loss Level: 40.735
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