US CPI today is the major focus. Markets are on hold until the release, then it's game on.

Hi there, traders. This is Brad Goodwood with today's trading action. All right. As we come into the Asian session at the moment, pretty much as usual, you get poor trading conditions as we disconnect from that North American session on Tuesday. And the markets, I've got to say, just looking at the technical side of things on the majors in particular, right, this is where the action is going to be, right? US CPI numbers, we're seeing the dollar slide a little, right? euros picked itself up off the floor sterling is trying to get above that resistance line as is aussie and kiwi and you've got uh oil rattling right i've got that ink that's y-axis inverted so you can see dollar CAD now starting to follow oil a little bit clearer the beast still uncertain and dollar swiss isn't really doing too much at the moment okay it's drifted a little bit lower but not too much at this point. So what's happening? Well, this is a little bit of profit taking I would expect ahead of the US CPI numbers. Just keep an eye on the markets. This is early doors for the Asian session and we've got sort of mixed conditions as far as the equity indices and the majors. That's why we have those poor trading conditions. All right, so now just come into the calendar, right? This is where the action's gonna be And it's going to be, there's a lot of, I was going to say pressure, but there's a lot of focus, obviously, on the US numbers. So as we come into that US session, I can't see too much happening ahead of this, right? This is the main number. It's the year-on-year number. The month-on-month will come into play if it's significantly variant, but everything that the Fed talks about is the year-on-year number, okay? So these are the two numbers that you have to work for. Once they come out, just keep an eye on the CPI, ex-food and energy. They can come into play afterwards, but you know what? It's that one number that's going to determine what's going on. The new traders, if you just scroll up a bit, hit the 12 symbols affected. Have a look what's going to happen if we get stronger numbers, as expected, or weaker numbers. right so with the stronger numbers there's a lot of instruments in play right so that's um you would be looking for as in the setups at the moment technically euro and kiwi down and you've got dollar yen dollar swiss dollar cad all going up right so check this out ahead of the US CPI release it will help guide you into the trading opportunity right the interest rate tracker just keep an eye this, on hold, 79.2%. Now, a lot of people aren't expecting much out of the number, maybe something as expected. If it's weaker, the on hold is going to go up towards 100%. If it's a stronger number, well, it's probably going to drift down a bit to maybe 50%, something like that. That's what you're getting, but there's not much move. So really weak numbers. I think we're going to get a dollar clean out, but it's largely factored in the Fed isn't doing anything anyway right so let's keep that in mind now the live signals okay i've got to stress like i know a lot of traders are using the signals and for good reason right they are a great a great resource to find trading opportunities and activity just keep an eye on the trading conditions okay we have updated these so there's now three trading conditions there's poor trading conditions good trading conditions, and neutral, which is where the things aren't moving too much, a little bit of caution is required. All right. So that's where we are. I don't see things moving, as I said, ahead of the US CPI numbers. Keep an eye on the markets. They are prime for a dollar sell-off. Will we get it? I don't know, but let's just see how the pennies roll. Now, if you're looking to trade the numbers, just understand that with those trend lines breaking, we lose a little bit of power from the trade because if the trend lines hadn't broken yet and this comes out, say, weak, like a weaker number, we get a nice clean snap through the trend lines. Euro is probably the one pair at this early stage that I would consider a better opportunity than sterling and Aussie and Kiwi because we've got that trend line there to hit right when i say hit trade through that trend line that's where the liquidity is don't think it's going to stall there if we get a like a 3.4 percent print that's going to take off to the top side that's probably your best trading instrument at the moment all right i'll try and come back uh during that european session and give it another update see if anything's changed if it has i'll update you Otherwise, strap in. This is going to be good, right? This is a good number to come out, flush the market out of any stale positions, and then we go again. My worst case scenario is a number as expected. If it comes out 3.6%, that is going to suck, right? And I say that because we have got the markets moving right at the moment in anticipation of sort of weaker numbers, but if it comes out as expected, it just neutralizes everything and we lose all momentum. All right. So either way, regardless if you're looking for bearish or bullish numbers, we just want something that's different to the forecast, right? That gets the ball rolling. And for me, with the way the dollar index is going, weaker numbers would be a really great trade. Definitely the euro has got to be on the cards there, right? And that would push dollar Swiss down so do your analysis understand where those key levels are and like even this one on dollar swiss i would be fine tuning the uh trend line there from this level right this is the most relevant level 82.95 right that's where we want to start hitting uh dollar swiss all right guys that's it for me uh not much to do during the asian session maybe even early european session just take it easy cool your jets and let's wait for something to happen all right and don't forget if you if you're looking at this and you you know it can be quite daunting trading the number i'm not going to hit it right on the number i'll use that technical level on the euro perhaps but after this number comes out this is where we line things up with aussie and sterling the next day right because that number is fresh if we get variance we get dollar direction makes trading easier, right? The news pages, they're pretty empty with data. So I bet all the news services are crying out for a number that gives them something to write about, right? Okay, guys, have a good one. All the best. Cheerio.