The USD moved lower after the tamer than expected US CPI data. The Fed now has 2 successive months of easing inflation and that is despite a 0.4% rise in shelter (if only that cracked).
The data helped to push stocks higher in pre-market trading (S&P, Nasdaq are trading a new all-time highs). Yields are sharply lower with double-digit declines. The US dollar is lower as well.
For the EURUSD, it moved above its 100 and 200-day moving averages at 1.0785 and 1.0803 respectively. The price also moved above the 50% midpoint of the move down from the June high to the June low at 1.0816. That level is now close risk for buyers looking for more upside. More conservative risk would be the 100-day moving average at 1.0803. If the buyers are to keep control, they need to stay above that moving average level. On the topside getting above the 200-hour moving out of 1.0832 is needed to give the buyers even more control.
For the USDJPY, it fell at below is 100-day moving average 156.68, and it’s 200-hour moving average at 156.431. The next target comes against the 50% midpoint of the June trading range. That level comes at 155.96. So far that level is holding support. A break below opens the door for further selling.
The GBPUSD extended above the high price from June at 1.2819, and a swing area between 1.2822 and 1.28272. That area between 1.2819 and 1.2827 is now support. Stay above is more bullish. On the topside, the high price from March at 1.2893 is the next key target. That level was the highest level going back to July 2023.