Gold And Stocks Tank As US Inflation Runs Hot – US Dollar Gains

Markets to Watch

Gold, AUD/USD, EUR/USD  – markets in focus today.

Gold

Gold appears to have formed a triple top at the $1,840 area. Aggressive bears may want to push it for the measured move, somewhere around the $1,790, although the risk-reward ratio is not that appealing (GLD).

AUD/USD

One of the biggest drops was seen on the AUD/USD pair. The market here formed a head and shoulders pattern before the inflation release, then falls. The AUD/USD pair was one of the currency pairs that benefited from both higher commodity prices and higher equity prices. Now that the two are reversing, the AUD/USD pair might have more room to the downside (FXA).

EUR/USD

Another triple top might have formed on the EUR/USD pair. The 1.2170 area proved difficult to crack, and now the path of least resistance seems to be a move toward the pivotal 1.20 (FXE, UUP).

Winners and Losers

The US dollar is the absolute winner in light of the weak inflation data, while the equity markets tanked.

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Disclaimer: None of the content in this article should be viewed as investment advice or a recommendation to buy or sell. Past performance/statistics may not necessarily reflect future ...

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