EUR/USD Drops to Support, USD Range Expands Ahead of CPI, FOMC

Talking Points:

– This week’s economic calendar is relatively tame compared to the past couple of weeks; but coming more into focus is next week’s FOMC rate decision, which is currently showing an 88.8% chance of a hike. This will be Jerome Powell’s first rate decision as the head of the bank, and this is an opportune time to get a feel for how Mr. Powell’s tenure atop the bank might take place.

– Before we get to next week’s widely-expected rate hike, we get inflation data out of the United States tomorrow morning, and this has been a hot-button around US Dollar price action. The Greenback is currently seeing range expansion ahead of the next two weeks’ outlay, and this has helped to craft a support test in EUR/USD while GBP/USD is testing shorter-term resistance. Also of interest is a longer-term setup in USD/JPY, which has provided enough support to quell the shorter-term sell-off, creating a second shorter-term symmetrical wedge formation.

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US Inflation Data This Week –

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