Sat, Oct 23, 2021 @ 16:31 GMT
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All Eyes On The US CPI Rates For August

The USD remained rather steady, maybe with a few gains, against a number of its counterparts, despite volatility having increased somewhat during yesterday’s sessions as well as today’s Asian session. Market expectations are for CPI rates to tick down which theoretically could weaken the USD as it could ease pressure on the Fed to start tapering its QE program rather earlier than later. Yet the rates are to remain at high levels and a tick down may prove insufficient for market worries regarding the inflationary pressures in the US economy to be calmed down. On the other hand, gold prices edged lower during today’s Asian session, also due to the strengthening of the USD, yet the overall sideways movement seems to be still present. US Stocks ended the day mixed with low volatility in anticipation of the US CPI rates and given that US yields slipped lower yesterday.

EUR/USD rose yesterday after bouncing on the 1.1785 (S1) support line. We tend to maintain a bias for a sideways movement given also that the RSI indicator below our 4-hour chart remains near the reading of 50, implying a rather indecisive market. Should the USD remain in high demand, we may see the pair dropping and breaking the 1.1785 (S1) support line, aiming for the 1.1695 (S2) support level. Should a buying interest be displayed by the market we may see EUR/USD rising, breaking the 1.1885 (R1) resistance line and take aim for the 1.1990 (R2) resistance hurdle.

Apple’s new iPhone to be unveiled?

Apple Inc (#AAPL) could be unveiling its new iPhone, as well as the new Apple watch and AirPods in a special event planned for today. Analysts tend to expect some changes yet nothing drastic technically speaking, highlighting the possibility of an improved processor and camera system for the time being. The mid-September launch usually results in a sales surge in the last week of Apple’s fiscal fourth quarter as millions purchase the new iPhones and overall is expected to create a lot of buzz around Apple’s share price. It should be noted that Apple’s share price suffered a blow on Friday after the company lost a court case regarding its App store policies after a long dispute with Epic Games.

Apple’s (AAPL) share price seems to have stabilised somewhat after suffering a hit on Friday as it bounced on the 148.40 (S1) support line. We tend to remain uncertain for the share price’s stabilisation, given that the RSI indicator below our 1-hour chart is just above the reading of 30, underscoring that the bears are still present. On the other hand, Apple’s special event could alter the share’s direction, depending on the outcome. Should the bears regain control over the share’s direction, we may see it breaking the 148.40 (S1) support line and take aim for the 146.50 (S2) support level. Should bulls take over, we may see the share’s price breaking the 149.80 (R1) resistance line and aim for the 152.10 (R2) resistance level.

Other economic highlights today and the following Asian session:

Today during the European session, we get UK’s employment data for July and should the rates and figures imply a tightening of the UK employment market we may see GBP getting some support. Later on, we note from Sweden the release of the CPI rates for August and if the rates accelerate, SEK could gain as it could provide a boost for Riksbank’s confidence. The main event for the day is expected to be the release of the US CPI rates as mentioned above, while CAD traders may keep an eye out for Canada’s manufacturing sales for July and oil traders could be more interested in the release of the weekly API crude oil inventories figure. During tomorrow’s Asian session we get from New Zealand the current account balance for Q2, from Japan the machinery orders for July, while Aussie traders may be eyeing the release of China’s industrial output and retail sales growth rates for August.

EUR/USD H4 Chart

Support: 1.1785 (S1), 1.1695 (S2), 1.1605 (S3)

Resistance: 1.1885 (R1), 1.1990 (R2), 1.2090 (R3)

#AAPL H1 Chart

Support: 148.40 (S1), 146.50 (S2), 164.30 (S3)

Resistance: 149.80 (R1), 152.10 (R2), 154.65 (R3)

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