CPI Impact: Evaluating NZDUSD for Potential Short Position

Hey Traders, in today's trading session we are monitoring NZDUSD for a selling opportunity around 0.61550 zone, NZDUSD is trading in a downtrend and currently is in a correction phase in which it is approaching the trend at 0.61550 support and resistance area.The recent release of CPI data in the United States has significantly influenced the forex market dynamics, particularly impacting the NZDUSD pair. With the USD displaying strength following the higher-than-expected CPI figures, market sentiment has shifted towards a stronger dollar. This upward pressure on the USD, driven by the inflationary data, is likely to exert downward pressure on currency pairs like NZDUSD. As traders assess the implications of the CPI data on the Federal Reserve's monetary policy stance, heightened volatility in the forex market is anticipated. Consequently, considering the fundamental backdrop of USD strength stemming from the CPI data, we're closely monitoring NZDUSD for potential selling opportunities around the 0.61550 zone. Trade safe, Joe.

Comment:

Watching a potential trigger below but nearby