Analysis of Consumer Price Index Data and Forex Trading Opportunities

Analysis of Consumer Price Index Data and Forex Trading Opportunities

The recent report from the US Bureau of Labor Statistics revealed that the Consumer Price Index (CPI) in the US rose to 3.2% year-over-year in February, slightly higher than the previous month’s 3.1%. The Core CPI, which excludes volatile food and energy prices, also increased to 3.8% year-over-year. The main contributors to this increase were rising shelter and gasoline prices, with the energy index rising by 2.3% in one month.

Impact on Currency Markets

Following the release of the CPI data, the US Dollar Index experienced a marginal increase, rising by 0.08% to 102.93. This slight uptick may have been influenced by the higher-than-expected core inflation numbers. In the forex market, various currency pairs are reacting to this development, offering potential trading opportunities for investors.

Forex Trading Analysis


On the 4-hour chart of the AUDUSD pair, price action is currently retreating from a significant supply zone, coinciding with the 76% Fibonacci retracement level. Additionally, a trendline support and demand zone are also evident on the chart. Considering these technical factors, a bearish bias is suggested until price reaches the demand zone for a potential bounce.


In the case of the EURUSD pair, a breakout from a wedge consolidation pattern has occurred on the 4-hour timeframe. The next target for price movement could be the 200-period moving average. However, a short-term bearish outlook is expected until price finds support from moving averages or Fibonacci retracement levels.


The recent rejection from a supply zone on the 4-hour chart of GBPUSD has led to a break of trendline support. This development indicates the potential for further downward movement until price reaches a confluence of the trendline support and the 200-period moving average. Despite the current bearish sentiment, the overall market structure may be shifting.

Trading CFDs involves inherent risks, and effective risk management is crucial for success. As investors navigate potential trading opportunities in response to CPI data and technical analysis, it is imperative to conduct thorough research and implement sound risk management strategies. Avoiding costly mistakes and optimizing trading decisions will be essential in pursuing profitable outcomes in the forex market.

Technical Analysis

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