US CPI higher than expected and sends USD higher. What are the technical telling traders?

The USD has moved higher in early North American trading after the higher-than-expected CPI data for January. Stocks are lower (NASDAQ down -300 points).. Yields are higher (10 year up over 10 basis points).

The EURUSD has moved below the low prices from last week and the low price going back to December at 1.0723. Stay below that level keeps the sellers more in control today going forward.

The USDJPY is moving to new highs since November 17 and in the process is extending above a swing area on the daily chart between 149.70 and 150.158. Staying above those levels keeps the buyers more in control.

The GBPUSD has moved back below the low swing area from the “Red Box” that defined the trading range from mid-December until last week. That lower swing area comes between 1.2602 and 1.26137. Staying below those levels keeps the sellers more control. On the downside, the key 200-day moving average is being approached at 1.2562. That will be a key barometer for both buyers and sellers going forward. Moving below would increase the bearish bias.

This article was written by Greg Michalowski at Source