EXCLUSIVE OFFER
Get the latest trade ideas from our community to enhance your market insights and identify key entry points. Sign up for our newsletter to get live updates.
CPI Plunges, USOIL Resistance In Play
Welcome to Mid-Week Trade! It was a wild Tuesday on the markets, headlined by a blockbuster US CPI report. Stocks traded in a whipsaw fashion during the NYC session, as did commodities and currencies. The big loser? IBM shares, which posted a massive 25% daily loss.
During the US pre-market hours, CPI for June was the big story. Monthly, CPI came in at -0.4%, showing an actual contraction from May’s figures. This was much better than expected and sent the USD reeling for the session. Core CPI also showed promise, posting a flat 0.0%, beneath the 0.2% expected.
So, are these numbers as good as they appear? No. Remember, the monthly inflation figures are based on reports during the April/May period of high energy prices due to the Iran War. June was a ceasefire month; don’t be surprised if this downturn in CPI is only temporary now that tensions have resumed in the Middle East.
Here is a topside resistance technical worth watching for USOIL:
Weekly 62% Fibonacci Retracement, 85.56
Given the current news cycle and resumption of the US/Iran War, a bullish bump from current levels around 80.00 is likely. If so, a sell from this resistance zone may come into play in the coming hours. Check out our Key Levels for more information on this Trade Idea.
That’s all for now…see you on tomorrow’s US session livestream! (Switch Markets on YouTube, 1:00 PM EST)
Input your email to be notified when our next free competition is open for registration.
Subscribe for on-demand lessons, trade ideas, trading challenges and weekly newsletters packed with actionable information.
