ANALYSIS
NQ100 Finds Support from PPIApr 14
EURUSD close to the end in recovery
According to data released today by the US Department of Commerce; personal spending in the country in April increased by 0.4 percent compared to the previous month and it rose by 0.9 percent above forecast of 0.7 percent year-over-year. During this period, the personal consumption expenditures price index (PCE), known as the inflation indicator of the Fed, was 0.2 percent on a monthly basis and 6.3 percent on an annual basis. The PCE deflator had risen to a 40-year peak of 6.6 percent the previous month. The announced data set revealed that the upward risks to the inflation outlook in the world's largest economy will continue in the short term ahead. In addition, along with the purchases in US dollar derived from the expectations that the Fed will not reduce the momentum of monetary tightening, it became difficult for the pair to recover. Technically, the pair, which gave the signal of the 3rd wave decline after facing strong resistance at Fibonacci 61.8 percent fan line, can decline towards 1.0620 below 1.0670. On the other side, 1.0760 – 1.0800 will be our strong resistance zone.
