DIFX DIVE: Weekly Analysis 10-14 October 2022

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Yesterday (October 13th), the US published the Consumer Price Index (CPI) for September, which came out more than expected (8.2% as opposed to the expected 8.1%). In this week’s DIFX Dive, we’ll be analyzing the following assets to see their response to the news:

Dollar Index (DXY)

The CPI data caused a quick jump in the DXY to break above the resistance at $113.6 but was soon followed by a selloff to break below the trend to the downside.

The Index is now trading between the 50 and 100 daily moving averages as it experiences a consolidation stage after the sell-off.

Traders can expect the index to move between $110 – $114 in the short term.

US Dollar/Japanese Yen (USD/JPY)

USD/JPY has been bullish since the break above $146. The CPI data caused the pair to test the 24-year high at $147.6 which experienced a massive rejection.

The Bank of Japan has claimed that they would take action in case of any sudden movement of the pair, however, we have not seen any signs of manipulation as of yet.

The resistance at $147.6 is the last key level holding the pair back from further gains toward $150.

Gold/US Dollar (XAU/USD)

Gold is currently staying between $1640 and $1680. The CPI data pushed the price to $1642.

As the USD sell-off began, the bulls entered the market for Gold and since then, we have seen it retrace above the support at $1660.

RSI is gaining momentum as well and traders are betting on a push for $1680 in the short term.

Bitcoin/US Dollar (BTC/USD)

The CPI data caused a drop in Bitcoin as well, however, it saw a strong rebound to the upside.

We can see that the support level at $19,300 is extremely reliable and there are solid long positions around this level.

Price action has developed a trend line with lower highs as we see a squeeze develop. Traders can keep an eye on whether there is a breakout for either side in the short term.

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