Data Update: CPI & Retail Sales
Posted: 2017-05-12 12:53:41Data came in light across the board:
This is likely to take some pressure off the FOMC to raise rates and market participants are selling dollars.
USDJPY marked a low at 113.46 before running stops through 59/63 support before a short term reversal candle was seen that has seen price hold above this low print in a tight consolidation overnight and into this morning. However we are back testing below there again after the data. Price is in a small corrective wave from 114.37 highs and could be a short term Double Top with yesterday seeing a false neckline break. A break through 113.59/63 and yesterday’s low would trigger this pattern to target 112.88/90 which is a bigger picture fib.
EUR sold lower breaking through 1.0850 to mark a quick low at 1.0839 before price reclaimed ground above this support, yet another false break. Intraday 1.0839/50 offer short term support, below this is 1.0821. A break through these and the corrective target and gap fill are in play.. A move above resistance at 1.0897 and 1.0910 fib we would have to look for upside to be back in focus. This looks likely after the data, which is dollar negative.