US Dollar collapses following the October US CPI reading. (Pivot Orderbook analysis)
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- US Dollar collapses following the October US CPI reading.
- USDJPY falls to the lowest in more than a month.
- Greenback seems vulnerable to more losses.
The pair currently trades last at 143.71.
The previous day high was 146.8 while the previous day low was 145.17. The daily 38.2% Fib levels comes at 146.18, expected to provide resistance. Similarly, the daily 61.8% fib level is at 145.79, expected to provide resistance.
The USDJPY lost almost 300 pips in a few minutes following the release of US inflation data. The pair dropped from above 146.00 to as low as 143.14, reaching the lowest level since September 23.
The US Consumer Price Index annual rate dropped from 8.2% to 7.7% in October, below the 8.0% of market consensus and hitting the lowest since January. Also core reading showed lower-than-expected numbers.
The inflation reading sent US bond yields sharply lower. The US 10-year dropped to 3.90% from 4.10%, while the 2-year fell from 4.60% to 4.38%. Equity prices in Wall Street jumped. The yen jumped versus the dollar and remained steady against other currencies, not affected by risk appetite and supported by the decline in US yields. Despite showing already massive losses, the Dollar still looks vulnerable.
The USDJPY broke the key support area of 145.00. While below, the bias should point to the downside. The next strong support is seen around 141.50, with an intermediate area at 142.60.
Technical Levels: Supports and Resistances
EURUSD currently trading at 143.71 at the time of writing. Pair opened at 146.53 and is trading with a change of -1.92 % .
| Overview | Overview.1 | |
|---|---|---|
| 0 | Today last price | 143.71 |
| 1 | Today Daily Change | -2.82 |
| 2 | Today Daily Change % | -1.92 |
| 3 | Today daily open | 146.53 |
The pair is trading below its 20 Daily moving average @ 147.86, below its 50 Daily moving average @ 145.4 , above its 100 Daily moving average @ 140.67 and above its 200 Daily moving average @ 132.49
| Trends | Trends.1 | |
|---|---|---|
| 0 | Daily SMA20 | 147.86 |
| 1 | Daily SMA50 | 145.40 |
| 2 | Daily SMA100 | 140.67 |
| 3 | Daily SMA200 | 132.49 |
The previous day high was 146.8 while the previous day low was 145.17. The daily 38.2% Fib levels comes at 146.18, expected to provide resistance. Similarly, the daily 61.8% fib level is at 145.79, expected to provide resistance.
Note the levels of interest below:
- Pivot support is noted at 145.54, 144.54, 143.91
- Pivot resistance is noted at 147.16, 147.79, 148.79
| Levels | Levels.1 |
|---|---|
| Previous Daily High | 146.80 |
| Previous Daily Low | 145.17 |
| Previous Weekly High | 148.85 |
| Previous Weekly Low | 145.67 |
| Previous Monthly High | 151.94 |
| Previous Monthly Low | 143.53 |
| Daily Fibonacci 38.2% | 146.18 |
| Daily Fibonacci 61.8% | 145.79 |
| Daily Pivot Point S1 | 145.54 |
| Daily Pivot Point S2 | 144.54 |
| Daily Pivot Point S3 | 143.91 |
| Daily Pivot Point R1 | 147.16 |
| Daily Pivot Point R2 | 147.79 |
| Daily Pivot Point R3 | 148.79 |
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