Mid-Week Technical Outlook: Breakouts

Today’s big event and potential market shaker will be the latest US inflation data which could offer fresh insight into the Federal Reserve’s next move.

As the countdown to the April CPI report enters its final hours, here are a selection of technical setups to keep an eye on.

Dollar Index trapped within range

After swinging within a range over the past few weeks, could the Dollar Index be gearing up for a breakout? Support can be found at 100.72 and resistance at 102.34. A bullish break above 102.34 could inspire an incline towards 103.00. If prices slip back under 100.72, bears may take prices towards 100.00.

EURUSD edges towards support level

It is the same old story for the EURUSD with prices trapped within a range. Support can be found around 1.0912 and resistance at 1.1075. Bears seem to be making a move, dragging prices closer toward the support. However, the pending US inflation report could heavily influence the currency pair's short-term outlook. A bearish breakout under 1.0912 could open the doors toward 1.0845 – where the 50-day SMA resides.

GBPUSD steady above 1.2600

Prices remain firmly bullish on the daily charts as there have been consistently higher highs and higher lows. The recent breakout above 1.2580 has opened the doors to higher levels with 1.2730 and 1.2870 acting as key points of interest. Should prices slip back under 1.2580, bears may target 1.2530 and 1.2380, respectively.

USDJPY lingers above 135.00

Despite breaking above the 135.00 resistance level, the USDJPY looks pressured on the daily charts. More resistance can be found around 137.00, where the 200-day SMA resides, and 137.77. If prices end up slipping back under 135.00, the USDJPY could test 133.70, 132.90, and 131.20.

SPX500_m remains rangebound

The SPX500_m needs a potent fundamental spark to trigger a bullish or bearish breakout. Support can be found at 4050 and resistance at 4180. A break below 4050 may open the doors towards 4000. If bulls push prices beyond 4180, the index may target levels not seen since August 2022 around 4280.

NQ100_m bounces within a range

It feels like most markets are on standby, waiting for the next big catalyst to trigger a big move. The NQ100_m remains in a range with support found at 12800 and resistance at 13300. A breakout could be on the horizon.

Gold remains a choppy affair

The precious metal is likely to be heavily influenced by the pending US CPI report. A move back above $2047 may open the doors toward the 2023 high at $2063. If prices slip back under $2015, this could signal a selloff towards $2000.

Dollar index EURUSD GBPUSD USDJPY S&P 500 Nasdaq 100 Gold inflation Federal Reserve CPI